ARCC dividend yield: 9.06%. SCHD dividend yield: 3.77%. 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. SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on quality companies with consistent dividend histories. With $60B+ AUM, it's the most popular dividend ETF in the US — combining income with quality. Only companies with 10+ consecutive years of dividends qualify. The ETF rebalances annually and has delivered market-beating total returns since inception in 2011.
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.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on quality companies with consistent dividend histories. With $60B+ AUM, it's the most popular dividend ETF in the US — combining income with quality. Only companies with 10+ consecutive years of dividends qualify. The ETF rebalances annually and has delivered market-beating total returns since inception in 2011.
Is ARCC or SCHD better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while SCHD offers 3.77% (1.05/share/year). ARCC provides higher current income. However, SCHD has grown its dividend faster (13.05% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs SCHD earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. SCHD pays approximately $377/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $1,926/year (SCHD).
Does ARCC or SCHD pay monthly dividends?
ARCC pays quarterly dividends. SCHD 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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