BDC Comparison
ARCC vs HTGC vs MAIN: Which Fits Each Goal in 2026?
A side-by-side comparison of Ares Capital Corporation, Hercules Capital, Inc. and Main Street Capital Corporation covering yield, cost, risk, and income potential.
Data updated September 18, 2026
Best for
- ARCCInvestors who want higher current income (9.77% vs 5.69% for MAIN).
- HTGCInvestors who want higher current income (10.59% vs 5.69% for MAIN).
- MAINInvestors who want private-credit income through a business development company.
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.
ARCC tops the group over the trailing twelve months with a 1.66% total return, against HTGC at 0.85% and MAIN at -7.87%. Across the 10-year window, HTGC has the strongest compounding at 14.26% a year. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Oct 2007 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| ARCC | 2.48% | 1.66% | 9.98% | 9.46% | 12.41% | 11.97% | 17.8% | 0.28 | 0.39 | -19.3% |
| HTGC | 0.07% | 0.85% | 13.48% | 12.87% | 14.26% | 12.67% | 23.0% | 0.36 | 0.47 | -27.4% |
| MAIN | -4.01% | -7.87% | 20.06% | 14.96% | 13.40% | 16.56% | 21.1% | 0.66 | 0.92 | -22.4% |
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Oct 2007” measures every fund from October 5, 2007 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric |  ARCC |  HTGC |  MAIN |
|---|---|---|---|
| Full name | Ares Capital Corporation | Hercules Capital, Inc. | Main Street Capital Corporation |
| Issuer | Ares Management | Hercules Capital | Main Street Capital |
| Last Close | $19.40 as of September 18, 2026 | $17.33 as of September 18, 2026 | $56.19 as of September 18, 2026 |
| Distribution rate | 9.77% | 10.59% | 5.69% |
| Distribution Safety Score™ | 94 | 85 | 100 |
| Safety-Adjusted Yield | 9.18% | 9.00% | 5.69% |
| Expense ratio | — | — | — |
| AUM | — | — | — |
| Distribution frequency | Quarterly | Quarterly | Monthly |
| Underlying index | — | — | — |
| Objective | — | — | — |
| Asset class | Equity | Equity | Equity |
| Inception date | N/A | N/A | N/A |
| Beta | 0.627 | 0.747 | 0.731 |
| Last dividend | $0.48 declared, pays 09/30/2026 | $0.40 | $0.265 declared, pays 10/15/2026 |
| Ex-dividend date | 09/15/2026 | 08/11/2026 | 10/08/2026 upcoming |
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Quick verdict
ARCC (Ares Capital Corporation), HTGC (Hercules Capital, Inc.), MAIN (Main Street Capital Corporation) are dividend-paying business development companies (BDCs) that take different approaches.
HTGC offers the highest reported yield at 10.59%, followed by ARCC at 9.77%, MAIN at 5.69%.
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Deep dive
Yield & income
On a $10,000 investment: ARCC generates ~$81.42/month, HTGC generates ~$88.25/month, MAIN generates ~$47.42/month at current distribution rates.
Strategy & risk
ARCC is a business development company built around BDC exposure; HTGC is a business development company built around BDC exposure; MAIN is a business development company built around BDC exposure.
Security details
ARCC (Ares Capital Corporation) is a business development company. HTGC (Hercules Capital, Inc.) is a business development company. MAIN (Main Street Capital Corporation) is a business development company.
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Frequently asked questions
Which of ARCC, HTGC, MAIN is best for dividend income?
It depends on your goals. HTGC currently offers the highest reported distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility, and funds without an established distribution history have no comparable yield to evaluate. Consider your time horizon and risk tolerance.
What is the difference between ARCC, HTGC, MAIN?
ARCC (Ares Capital Corporation) is a business development company built around BDC exposure, issued by Ares Management. HTGC (Hercules Capital, Inc.) is a business development company built around BDC exposure, issued by Hercules Capital. MAIN (Main Street Capital Corporation) is a business development company built around BDC exposure, issued by Main Street Capital.
Can I hold ARCC, HTGC, MAIN together?
Yes — nothing prevents holding them together. 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.
Which of ARCC, HTGC and MAIN is safest?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — MAIN scores 100, ARCC scores 94, HTGC scores 85, so MAIN's payout currently looks the more resilient of the group. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 generate in each?
$10,000 in ARCC yields ~$81.42/month ($977.00/year). $10,000 in HTGC yields ~$88.25/month ($1,059.00/year). $10,000 in MAIN yields ~$47.42/month ($569.00/year).
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Dividend dates and history
ARCC vs HTGC vs MAIN — at a glance
Generated September 19, 2026.
Overview
ARCC, HTGC, and MAIN are all business development companies—publicly traded vehicles that lend to and invest in middle-market private businesses. All three deliver quarterly or monthly distributions to shareholders, but they differ meaningfully in yield, distribution frequency, and portfolio strategy. ARCC emphasizes broadly diversified lending across industries; HTGC focuses on technology, software, and healthcare; MAIN blends lending with equity co-investments and targets lower leverage. On portfolio composition, HTGC concentrates in technology and software lending, ARCC holds a broader industry mix, and MAIN pursues a hybrid model pairing debt with equity stakes and typically operating at lower leverage than peers.
Who each is best for
ARCC: Fits investors prioritizing moderate yield with lower market-relative volatility and preferring diversified lending exposure across sectors.
HTGC: Fits investors comfortable with higher yield and sector concentration, seeking exposure to technology and healthcare lending with slightly elevated price volatility.
MAIN: Fits investors who value lower distribution yield but seek monthly cash distributions, hybrid debt-equity participation in portfolio companies, and a more conservative capital structure.
Key risks to know
- NAV erosion at elevated yields. HTGC's 10.59% and ARCC's 9.77% rates, if partly funded by return-of-capital rather than interest and fee income, may compress net asset value over time—a common pressure in BDCs during periods of loan payoffs or slower origination.
- Credit and refinancing risk in middle-market lending. All three are exposed to borrower default and refinancing difficulty in their portfolio companies; economic slowdowns or tightening credit markets can pressure loan performance and force valuation write-downs.
- Interest rate sensitivity. Rising rates typically improve BDC profitability (wider lending spreads), but falling rates can pressure existing portfolio yields and NAV if bond-equivalent valuations decline—particularly acute for HTGC and ARCC given their higher yields.
- Sector concentration. HTGC's tilt toward technology and software represents higher idiosyncratic risk if that sector weakens; ARCC and MAIN offer broader diversification but still carry middle-market business risk.
- Leverage and covenant risk. BDCs use debt to amplify returns; changes in leverage ratios, covenant violations by borrowers, or tighter debt capital markets can force asset sales or distribution cuts. All three carry credit and refinancing risk inherent to middle-market lending; past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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