VYM dividend yield: 2.91%. ARCC dividend yield: 9.06%. VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income. 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.
VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.
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 VYM or ARCC better for dividend income in 2026?
VYM currently offers a 2.91% yield (3.44/share/year) while ARCC offers 9.06% (1.92/share/year). ARCC provides higher current income. However, VYM has grown its dividend faster (7.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in VYM vs ARCC earn per year?
With $10,000 invested today: VYM pays approximately $291/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $2,279/year (ARCC).
Does VYM or ARCC pay monthly dividends?
VYM 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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