ARCC dividend yield: 9.06%. MRK dividend yield: 3.25%. 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. Merck is a Dividend Aristocrat with 14+ consecutive years of increases. Keytruda (pembrolizumab) is the world's best-selling cancer drug and drives exceptional cash generation. The company's oncology and vaccines pipeline provides long-term growth visibility beyond the Keytruda patent cliff in the 2030s.
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.
Merck is a Dividend Aristocrat with 14+ consecutive years of increases. Keytruda (pembrolizumab) is the world's best-selling cancer drug and drives exceptional cash generation. The company's oncology and vaccines pipeline provides long-term growth visibility beyond the Keytruda patent cliff in the 2030s.
Is ARCC or MRK better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while MRK offers 3.25% (3.08/share/year). ARCC provides higher current income. However, MRK has grown its dividend faster (8.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs MRK earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. MRK pays approximately $325/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $950/year (MRK).
Does ARCC or MRK pay monthly dividends?
ARCC pays quarterly dividends. MRK pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
📬
Get this ARCC vs MRK comparison by email
Save your analysis + get weekly dividend insights. Free forever.