ARCC dividend yield: 9.06%. HTGC dividend yield: 10.22%. 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. Hercules Capital specializes in lending to venture-backed technology and life sciences companies. This unique focus allows it to capture higher yields than traditional BDCs. Strong origination network with leading VC firms. HTGC pays regular plus supplemental dividends, making total yield among the highest in BDC space.
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.
Hercules Capital specializes in lending to venture-backed technology and life sciences companies. This unique focus allows it to capture higher yields than traditional BDCs. Strong origination network with leading VC firms. HTGC pays regular plus supplemental dividends, making total yield among the highest in BDC space.
Is ARCC or HTGC better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while HTGC offers 10.22% (1.88/share/year). HTGC provides higher current income. However, HTGC has grown its dividend faster (4.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs HTGC earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. HTGC pays approximately $1022/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $3,064/year (HTGC).
Does ARCC or HTGC pay monthly dividends?
ARCC pays quarterly dividends. HTGC 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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