CSCO dividend yield: 2.85%. ARCC dividend yield: 9.06%. Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually. 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.
Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually.
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.
Is CSCO or ARCC better for dividend income in 2026?
CSCO currently offers a 2.85% yield (1.60/share/year) while ARCC offers 9.06% (1.92/share/year). ARCC provides higher current income. However, CSCO has grown its dividend faster (3.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in CSCO vs ARCC earn per year?
With $10,000 invested today: CSCO pays approximately $285/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $544/year (CSCO) and $2,279/year (ARCC).
Does CSCO or ARCC pay monthly dividends?
CSCO pays quarterly dividends. ARCC 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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