O dividend yield: 5.97%. ARCC dividend yield: 9.06%. Nicknamed 'The Monthly Dividend Company', Realty Income is a net-lease REIT with 15,000+ properties across the US and Europe. It has paid monthly dividends for 55+ consecutive years with 126 dividend increases since 1994 — a true Dividend Aristocrat. Its tenants include Walgreens, Dollar General, and FedEx. A cornerstone holding for income investors. 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.
Nicknamed 'The Monthly Dividend Company', Realty Income is a net-lease REIT with 15,000+ properties across the US and Europe. It has paid monthly dividends for 55+ consecutive years with 126 dividend increases since 1994 — a true Dividend Aristocrat. Its tenants include Walgreens, Dollar General, and FedEx. A cornerstone holding for income investors.
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.
O currently offers a 5.97% yield (3.12/share/year) while ARCC offers 9.06% (1.92/share/year). ARCC provides higher current income. However, O has grown its dividend faster (3.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in O vs ARCC earn per year?
With $10,000 invested today: O pays approximately $597/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $1,416/year (O) and $2,279/year (ARCC).
Does O or ARCC pay monthly dividends?
O pays monthly dividends. ARCC pays quarterly dividends. O pays monthly, which is preferred by investors who need regular cash flow.
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