ARCC Dividend Yield 2026: Ares Capital Corporation

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Data last updated: Jul 03, 2026

Dividend Yield: 10.25%

Annual Dividend: $1.92 per share

Payout Ratio: 113.1%

Ex-Dividend Date: 2026-06-15

Dividend Frequency: quarterly

Sector: Financial Services

Years of Dividend History: 23

About Ares Capital Corporation Dividend

Ares Capital Corporation dividend income comes from one of the largest Business Development Companies in the U.S., financing middle-market companies through loans, mezzanine debt, and leveraged buyout structures. The current yield stands at 10.55%, paid quarterly at $0.48 per share, with the next ex-dividend date on June 15, 2026. The trailing annual dividend rate is $1.92 per share. ARCC stock suits income-focused investors, with a beta of 0.618 pointing to below-market price volatility.

Dividend Safety

Ares Capital Corporation pays out 113.1% of earnings as dividends, a payout ratio classified as high (above 75%). For a BDC like ARCC, which generates income from interest payments on loans to middle-market borrowers across healthcare, business services, and manufacturing, a payout above 100% is common given the pass-through structure of the business model. Ares Capital Corporation dividend safety faces pressure from that elevated ratio, as any sustained compression in net investment income from its loan portfolio would leave less room to cover the current $1.92 annual rate.

Ares Capital Corporation (ARCC) Dividend Growth Rate, CAGR, and History

Ares Capital Corporation dividend history shows a CAGR of 2.2% per year from 2011 to 2025. The per-share annual dividend grew from $1.41 to $1.92 over that period (2026 is a partial year and excluded from this calculation). The largest annual increase in the window was 15.4% in 2022, though growth across most years was far more modest, with several years showing no increase at all.

Ares Capital Corporation Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+0.9%	$1.87 (2022)	$1.92 (2025)
5-Year	+3.7%	$1.60 (2020)	$1.92 (2025)
10-Year	+2.0%	$1.57 (2015)	$1.92 (2025)

Is Ares Capital Corporation a Good Dividend Stock?

ARCC is built for income-focused investors who want a high current yield from a business that lends to middle-market companies rather than chasing dividend growth. The yield of 10.55% is classified as high (above 4%), and it sits above the 5-year average of 10.17%, meaning the current entry point offers slightly more income than the historical norm. The trade-off is clear: a payout ratio above 100% and a 2.2% annual growth rate mean this is an income stock first, not a compounder. Investors get a double-digit yield backed by a diversified loan book; they accept a payout that leaves little margin for error if portfolio income weakens.

Recent Ares Capital Corporation Dividend Payments

Payment Date	Amount per Share
2026-06-15	$0.4800
2026-03-13	$0.4800
2025-12-15	$0.4800
2025-09-15	$0.4800
2025-06-13	$0.4800
2025-03-14	$0.4800
2024-12-13	$0.4800
2024-09-13	$0.4800
2024-06-14	$0.4800
2024-03-14	$0.4800

Ares Capital Corporation Annual Dividend History

Year	Total Dividends
2026	$0.9600
2025	$1.9200
2024	$1.9200
2023	$1.9200
2022	$1.8700

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Frequently Asked Questions

How often does Ares Capital Corporation pay dividends?

Ares Capital Corporation pays dividends quarterly. The most recent dividend was $0.48 per share, adding up to a $1.92 annual rate at the current pace.

What is Ares Capital Corporation's current dividend yield?

The current ARCC dividend yield is 10.55%. That sits above the 5-year average yield of 10.17%, making the current yield slightly elevated relative to its own recent history.

Has Ares Capital Corporation ever cut its dividend?

Within the available history from 2011 to 2025, there are year-over-year declines: 2013 dropped from $1.60 to $1.57, 2016 fell from $1.57 to $1.52, and 2020 declined from $1.68 to $1.60. The data window does not cover years before 2012.

How fast has Ares Capital Corporation grown its dividend?

Ares Capital Corporation has grown its dividend at a compound annual growth rate (CAGR) of 2.2% per year from 2011 to 2025. Growth has been uneven, with the largest single-year increase of 15.4% occurring in 2022.

Is Ares Capital Corporation a good dividend stock for income investors?

ARCC offers a 10.55% yield, which is classified as high (above 4%), making it a high-income option for investors focused on current cash flow. The payout ratio of 113.1% is elevated, so the income comes with meaningful sustainability risk if portfolio earnings compress.

Is Ares Capital Corporation dividend safe?

The payout ratio of 113.1% is above 100%, meaning reported earnings do not fully cover the current $1.92 annual dividend. Ares Capital Corporation dividend safety depends on the continued performance of its middle-market loan portfolio, which spans healthcare, business services, and manufacturing borrowers.

Why is Ares Capital Corporation dividend yield high?

ARCC's 10.55% yield reflects both its BDC structure, which requires distributing most income to shareholders, and a payout ratio above 100%. Slow dividend growth of 2.2% per year also means the yield has not been diluted by rapid share price appreciation.

How does Ares Capital Corporation compare to its own historical yield?

The current yield of 10.55% is above ARCC's 5-year average yield of 10.17%. The difference is modest, but it means investors today are receiving slightly more income per dollar invested than the recent historical norm.

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