Is XCH or ARCC a better dividend investment in 2026?

XCH currently yields 4.00% with a 5% 5-year dividend growth rate. ARCC yields 9.06% with 3.1% growth. The better choice depends on your goal: ARCC offers higher current income, while XCH is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between XCH and ARCC?

XCH has a forward dividend yield of 4.00% (2.00/share annually). ARCC yields 9.06% (1.92/share annually). The yield gap is 5.06 percentage points.

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

With $10,000 invested: XCH would pay approximately $400/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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XCH vs ARCC: Dividend Comparison 2026

XCH yields 4.00% · 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 $15.8K in total portfolio value

INVESTMENT

TIME HORIZON10 years

XCH

4.00%

Share price

$50.00

Annual div

$2.00

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$28.0K

Annual income

$899.19

Full XCH 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 — XCH vs ARCC

Annual dividend income

MetricXCHARCC

Forward yield	4.00%	9.06% ✓
Annual dividend / share	$2.00 ✓	$1.92
Payout ratio	50% ✓	88%
1-year div growth	5% ✓	2%
5-year div CAGR	5% ✓	3.1%
Portfolio after 10y	$28.0K	$43.8K ✓
Annual income after 10y	$899.19	$2,279.31 ✓
Total dividends collected	$6.4K	$15.5K ✓
Payment frequency	quarterly	quarterly
Sector	Stock	BDC

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

Year	XCH Portfolio	XCH Income/yr	ARCC Portfolio	ARCC Income/yr	Gap
1	$11,120	$420.00	$11,774	$933.74	$654.00 → ARCC
2	$12,357	$458.31	$13,808	$1,045.61	$1.5K → ARCC
3	$13,721	$499.76	$16,135	$1,166.34	$2.4K → ARCC
4	$15,227	$544.58	$18,786	$1,296.19	$3.6K → ARCC
5	$16,885	$593.02	$21,800	$1,435.41	$4.9K → ARCC
6	$18,713	$645.34	$25,215	$1,584.23	$6.5K → ARCC
7	$20,724	$701.81	$29,076	$1,742.84	$8.4K → ARCC
8	$22,938	$762.73	$33,430	$1,911.44	$10.5K → ARCC
9	$25,372	$828.41	$38,328	$2,090.21	$13.0K → ARCC
10	$28,047	$899.19	$43,827	$2,279.31	$15.8K → ARCC

XCH vs ARCC: Complete Analysis 2026

XCH — Stock

XCH is a dividend-paying stock. Use this calculator to estimate your future dividend income, DRIP compounding returns, and passive income potential from investing in XCH shares.

Full XCH 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 XCH or ARCC better for dividend income in 2026?

XCH currently offers a 4.00% yield (2.00/share/year) while ARCC offers 9.06% (1.92/share/year). ARCC provides higher current income. However, XCH has grown its dividend faster (5% 5Y CAGR), which may lead to better long-term income through compounding.

How much would $10,000 in XCH vs ARCC earn per year?

With $10,000 invested today: XCH pays approximately $400/year. ARCC pays approximately $906/year. With DRIP reinvestment over 10 years, these grow to $899/year (XCH) and $2,279/year (ARCC).

Does XCH or ARCC pay monthly dividends?

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