Is QYLD or ARCC a better dividend investment in 2026?

QYLD currently yields 11.43% with a -2.1% 5-year dividend growth rate. ARCC yields 9.06% with 3.1% growth. The better choice depends on your goal: QYLD offers higher current income, while ARCC is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between QYLD and ARCC?

QYLD has a forward dividend yield of 11.43% (1.92/share annually). ARCC yields 9.06% (1.92/share annually). The yield gap is 2.37 percentage points.

How much would $10,000 in QYLD vs ARCC pay in dividends per year?

With $10,000 invested: QYLD would pay approximately $1143/year in dividends. ARCC would pay approximately $906/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

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QYLD vs ARCC: Dividend Comparison 2026

QYLD yields 11.43% · ARCC yields 9.06% · See full DRIP projection below

vsEnter any two US tickers

After 10 years · $10,000 invested · DRIP enabled

🏆 ARCC wins by $24.3K in total portfolio value

INVESTMENT

TIME HORIZON10 years

QYLD

Global X Nasdaq 100 Covered Call ETF

11.43%

Share price

$16.80

Annual div

$1.92

5Y div CAGR

-2.1%

Payout ratio

95%

After 10 yrs · $10,000 · DRIP

Portfolio value

$19.5K

Annual income

$3,553.75

Full QYLD calculator →

ARCC

Ares Capital Corporation

9.06%

Share price

$21.20

Annual div

$1.92

5Y div CAGR

3.1%

Payout ratio

88%

After 10 yrs · $10,000 · DRIP

Portfolio value

$43.8K

Annual income

$2,279.31

Full ARCC calculator →

Portfolio growth — QYLD vs ARCC

Annual dividend income

MetricQYLDARCC

Forward yield	11.43% ✓	9.06%
Annual dividend / share	$1.92	$1.92
Payout ratio	95%	88% ✓
1-year div growth	-5.2%	2% ✓
5-year div CAGR	-2.1%	3.1% ✓
Portfolio after 10y	$19.5K	$43.8K ✓
Annual income after 10y	$3,553.75 ✓	$2,279.31
Total dividends collected	$20.2K ✓	$15.5K
Payment frequency	monthly	quarterly
Sector	ETF	BDC

Year-by-year: QYLD vs ARCC ($10,000, DRIP)

Year	QYLD Portfolio	QYLD Income/yr	ARCC Portfolio	ARCC Income/yr	Gap
1	$10,279	$1,118.86	$11,774	$933.74	$1.5K → ARCC
2	$10,645	$1,229.16	$13,808	$1,045.61	$3.2K → ARCC
3	$11,111	$1,360.44	$16,135	$1,166.34	$5.0K → ARCC
4	$11,695	$1,517.70	$18,786	$1,296.19	$7.1K → ARCC
5	$12,420	$1,707.39	$21,800	$1,435.41	$9.4K → ARCC
6	$13,315	$1,937.94	$25,215	$1,584.23	$11.9K → ARCC
7	$14,417	$2,220.42	$29,076	$1,742.84	$14.7K → ARCC
8	$15,775	$2,569.54	$33,430	$1,911.44	$17.7K → ARCC
9	$17,455	$3,005.06	$38,328	$2,090.21	$20.9K → ARCC
10	$19,543	$3,553.75	$43,827	$2,279.31	$24.3K → ARCC

QYLD vs ARCC: Complete Analysis 2026

QYLD — ETF

QYLD sells covered calls on the full Nasdaq 100 index, generating very high monthly income (10%+ yield). The strategy caps upside participation in exchange for income. Best suited for investors who prioritize maximum current income over capital appreciation. NAV erosion over time is a known trade-off.

Full QYLD Calculator →

ARCC — BDC

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.

Full ARCC Calculator →

Frequently Asked Questions

Is QYLD or ARCC better for dividend income in 2026?

QYLD currently offers a 11.43% yield (1.92/share/year) while ARCC offers 9.06% (1.92/share/year). QYLD 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 QYLD vs ARCC earn per year?

With $10,000 invested today: QYLD pays approximately $1143/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $3,554/year (QYLD) and $2,279/year (ARCC).

Does QYLD or ARCC pay monthly dividends?

QYLD pays monthly dividends. ARCC pays quarterly dividends. QYLD pays monthly, which is preferred by investors who need regular cash flow.

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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.