ARCC dividend yield: 9.06%. DGRO dividend yield: 2.19%. Ares Capital is the largest Business Development Company by assets. It provides financing to middle market companies and pays a generous quarterly dividend plus occasional special dividends. With $21B+ in AUM and diversified exposure across industries, ARCC is the benchmark BDC for income investors. DGRO focuses on US companies with a history of growing dividends, screening for payout ratio sustainability. With 500+ holdings and ultra-low 0.08% expense ratio, it offers broad diversification among dividend growers. One of BlackRock's most popular ETFs for long-term dividend growth investors.
Ares Capital is the largest Business Development Company by assets. It provides financing to middle market companies and pays a generous quarterly dividend plus occasional special dividends. With $21B+ in AUM and diversified exposure across industries, ARCC is the benchmark BDC for income investors.
DGRO focuses on US companies with a history of growing dividends, screening for payout ratio sustainability. With 500+ holdings and ultra-low 0.08% expense ratio, it offers broad diversification among dividend growers. One of BlackRock's most popular ETFs for long-term dividend growth investors.
Is ARCC or DGRO better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while DGRO offers 2.19% (1.28/share/year). ARCC provides higher current income. However, DGRO has grown its dividend faster (9.5% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs DGRO earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. DGRO pays approximately $219/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $653/year (DGRO).
Does ARCC or DGRO pay monthly dividends?
ARCC pays quarterly dividends. DGRO pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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