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BDC Comparison

ARCC vs FSK: Which Is the Better Pick in 2026?

A head-to-head comparison of Ares Capital Corporation and FS KKR Capital Corp. covering yield, cost, risk, and income potential.

Data updated July 15, 2026

Side-by-side snapshot

ARCCFSK
Full nameAres Capital CorporationFS KKR Capital Corp.
IssuerAres ManagementFS Investments
Last Close$18.79 as of July 15, 2026$10.79 as of July 15, 2026
Distribution yield10.30%21.83%
Distribution Safety Score 9344
Expense ratio
AUM
Distribution frequencyQuarterlyQuarterly
Underlying index
Objective
Asset classEquityEquity
Inception dateN/AN/A
Beta0.620.898
Last dividend$0.4800$0.4200
Ex-dividend date06/15/202606/17/2026

Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose FSK if you want higher current income (21.83% vs 10.30% for ARCC).

Income calculator

See how much monthly income a hypothetical investment would generate in each business development company at current yields.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

ARCC (Ares Capital Corporation) and FSK (FS KKR Capital Corp.) are both quarterly-pay dividend-paying business development companies (BDCs), but they take different approaches.

FSK offers the higher yield at 21.83% vs 10.30% for ARCC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

Who should choose each?

Choose ARCC

Ares Capital Corporation

  • Want private-credit exposure — a BDC lending to middle-market companies.
  • Prefer lower volatility — a beta of 0.6 vs 0.9 for FSK.

Choose FSK

FS KKR Capital Corp.

  • Want higher current income — FSK yields 21.83% vs 10.30% for ARCC.
  • Want private-credit exposure — a BDC lending to middle-market companies.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, ARCC would generate roughly $85.83/month, while FSK would produce $181.92/month, at current distribution rates. Both pay quarterly distributions.

ARCC yield10.30%
FSK yield21.83%
Monthly diff on $10K$96.08

Strategy & risk

ARCC is a business development company, while FSK is a business development company. Beta is 0.62 for ARCC and 0.898 for FSK, indicating ARCC is less volatile relative to the market.

ARCC beta0.62
FSK beta0.898

Security details

ARCC (Ares Capital Corporation) is a business development company. FSK (FS KKR Capital Corp.) is a business development company.

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Frequently asked questions

Is ARCC or FSK better for dividend income?

It depends on your goals. FSK currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between ARCC and FSK?

ARCC (Ares Capital Corporation) is a business development company, while FSK (FS KKR Capital Corp.) is a business development company. They are issued by Ares Management and FS Investments respectively.

Can I hold both ARCC and FSK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

How much income does $10,000 in ARCC vs FSK generate?

At current rates, $10,000 in ARCC would generate roughly $85.83 per month ($1,030.00 annually). The same in FSK would produce about $181.92 per month ($2,183.00 annually).

More comparisons to explore

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