PM dividend yield: 4.27%. ARCC dividend yield: 9.06%. Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030. 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.
Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.
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.
PM currently offers a 4.27% yield (5.40/share/year) while ARCC offers 9.06% (1.92/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 PM vs ARCC earn per year?
With $10,000 invested today: PM pays approximately $427/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $722/year (PM) and $2,279/year (ARCC).
Does PM or ARCC pay monthly dividends?
PM 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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