ARCC dividend yield: 9.06%. MSFT dividend yield: 0.72%. 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. Microsoft has grown its dividend 10%+ annually for a decade, making it one of the best dividend growth stories in tech. Azure cloud dominance and AI integration (Copilot) drive strong cash generation. Low payout ratio of ~24% means dividends are extremely safe with significant room to grow.
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.
Microsoft has grown its dividend 10%+ annually for a decade, making it one of the best dividend growth stories in tech. Azure cloud dominance and AI integration (Copilot) drive strong cash generation. Low payout ratio of ~24% means dividends are extremely safe with significant room to grow.
Is ARCC or MSFT better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while MSFT offers 0.72% (3.00/share/year). ARCC provides higher current income. However, MSFT has grown its dividend faster (10.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs MSFT earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. MSFT pays approximately $72/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $199/year (MSFT).
Does ARCC or MSFT pay monthly dividends?
ARCC pays quarterly dividends. MSFT 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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