ARCC dividend yield: 9.06%. XYLD dividend yield: 9.02%. 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. XYLD sells covered calls on the S&P 500, converting equity volatility into monthly income. Yields 8-10% depending on market conditions. Similar to QYLD but with S&P 500 exposure — less volatile but comparable income mechanics. Popular for retirement income portfolios alongside other dividend ETFs.
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.
XYLD sells covered calls on the S&P 500, converting equity volatility into monthly income. Yields 8-10% depending on market conditions. Similar to QYLD but with S&P 500 exposure — less volatile but comparable income mechanics. Popular for retirement income portfolios alongside other dividend ETFs.
Is ARCC or XYLD better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while XYLD offers 9.02% (3.48/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 XYLD earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. XYLD pays approximately $902/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $2,364/year (XYLD).
Does ARCC or XYLD pay monthly dividends?
ARCC pays quarterly dividends. XYLD pays monthly dividends. XYLD pays monthly, which is preferred by investors who need regular cash flow.
📬
Get this ARCC vs XYLD comparison by email
Save your analysis + get weekly dividend insights. Free forever.