ARCC dividend yield: 9.06%. VYM dividend yield: 2.91%. 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. VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.
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.
VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.
Is ARCC or VYM better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while VYM offers 2.91% (3.44/share/year). ARCC provides higher current income. However, VYM has grown its dividend faster (7.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs VYM earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. VYM pays approximately $291/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $785/year (VYM).
Does ARCC or VYM pay monthly dividends?
ARCC pays quarterly dividends. VYM 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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