HDV dividend yield: 3.70%. ARCC dividend yield: 9.06%. HDV screens for dividend sustainability using Morningstar's economic moat methodology — only companies with wide or narrow moats qualify. Its concentrated portfolio of ~75 holdings represents high-conviction dividend payers in healthcare, energy, and consumer staples. Higher yield than SCHD with similar quality focus. 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.
HDV screens for dividend sustainability using Morningstar's economic moat methodology — only companies with wide or narrow moats qualify. Its concentrated portfolio of ~75 holdings represents high-conviction dividend payers in healthcare, energy, and consumer staples. Higher yield than SCHD with similar quality focus.
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 HDV or ARCC better for dividend income in 2026?
HDV currently offers a 3.70% yield (4.00/share/year) while ARCC offers 9.06% (1.92/share/year). ARCC provides higher current income. However, HDV has grown its dividend faster (4.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in HDV vs ARCC earn per year?
With $10,000 invested today: HDV pays approximately $370/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $793/year (HDV) and $2,279/year (ARCC).
Does HDV or ARCC pay monthly dividends?
HDV 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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