ARCC dividend yield: 9.06%. PEP dividend yield: 3.69%. 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. PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
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.
PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
Is ARCC or PEP better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while PEP offers 3.69% (5.42/share/year). ARCC provides higher current income. However, PEP has grown its dividend faster (6.7% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs PEP earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. PEP pays approximately $369/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $1,035/year (PEP).
Does ARCC or PEP pay monthly dividends?
ARCC pays quarterly dividends. PEP 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 PEP comparison by email
Save your analysis + get weekly dividend insights. Free forever.