ARCC dividend yield: 9.06%. T dividend yield: 6.24%. 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. AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
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.
AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
ARCC currently offers a 9.06% yield (1.92/share/year) while T offers 6.24% (1.11/share/year). ARCC provides higher current income. However, ARCC has grown its dividend faster (3.1% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs T earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. T pays approximately $624/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $432/year (T).
Does ARCC or T pay monthly dividends?
ARCC pays quarterly dividends. T 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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