BDC Comparison
ARCC vs MAIN: Same Structure, Different Lending Books
A head-to-head of Ares Capital and Main Street Capital covering payout schedule, size, and why a yield gap is not the whole decision.
Updated October 2, 2026
How these figures are calculated: methodology.
Best for
- ARCCInvestors who want higher current income (10.18% vs 7.84% 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. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
ARCC has outpaced MAIN over the trailing twelve months, posting a 3.54% total return against -5.32%. The picture flips over 10 years, though — MAIN has compounded at 13.09% a year, ahead of ARCC at 12.09%. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | 3Y annualized | 5Y annualized | 10Y annualized | Since Oct 2007 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| ARCC | -0.37% | 3.54% | 9.25% | 8.06% | 12.09% | 11.78% | 17.7% | 0.25 | 0.34 | -19.3% |
| MAIN | -5.35% | -5.32% | 20.20% | 14.45% | 13.09% | 16.43% | 21.1% | 0.66 | 0.93 | -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 October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “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 |  MAIN |
|---|---|---|
| Full name | Ares Capital Corporation | Main Street Capital Corporation |
| Issuer | Ares Management | Main Street Capital |
| Last Close | $18.86 as of October 2, 2026 | $55.11 as of October 2, 2026 |
| Distribution rate | 10.18% | 7.84% |
| Trailing 12-month yield | 10.18% | 7.84% |
| Distribution Safety Score™ | 94 | 100 |
| Safety-Adjusted Yield | 9.57% | 7.84% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Monthly |
| Underlying index | — | — |
| Objective | — | — |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.627 | 0.731 |
| Last dividend | $0.48 | $0.265 declared, pays 10/15/2026 |
| Ex-dividend date | 09/15/2026 | 10/08/2026 upcoming |
Bottom lineChoose ARCC if you want higher current income (10.18% vs 7.84% for MAIN). Choose MAIN if you want private-credit income through a business development company.
ARCC vs MAIN: two business development companies
Both are lenders, not funds. Payout cadence and the credit book should drive the choice, not a one-date yield gap.
| ARCC | MAIN | |
|---|---|---|
| Structure | Business development company | Business development company |
| Payout cadence | quarterly | monthly |
| Distribution rate | 10.18% | 7.84% |
| Size | — | — |
Income calculator
See how much monthly income a hypothetical investment would generate in each business development company at current yields.
Want to go deeper?
Add these BDCs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.
Quick verdict
ARCC (Ares Capital Corporation) and MAIN (Main Street Capital Corporation) are both dividend-paying business development companies (BDCs), but they take different approaches.
ARCC offers the higher yield at 10.18% vs 7.84% for MAIN. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
Still deciding? Track ARCC & MAIN for free
Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.
Deep dive
Yield & income
On a $10,000 investment, ARCC would generate roughly $254.50 cash per distribution, while MAIN would produce $65.33 cash per distribution, at current distribution rates.
Strategy & risk
ARCC is a business development company built around BDC exposure, while MAIN is a business development company built around BDC exposure. Beta is 0.627 for ARCC and 0.731 for MAIN, making ARCC the less volatile of the two by this measure.
Security details
ARCC (Ares Capital Corporation) is a business development company. MAIN (Main Street Capital Corporation) is a business development company.
Enjoyed this page?
Do us a favor — if you found this comparison useful, please share it with a friend researching dividend investments.
Frequently asked questions
What is the difference between ARCC and MAIN?
Both are business development companies — lenders, not funds. ARCC (Ares Capital Corporation) distributes 10.18% quarterly. MAIN (Main Street Capital Corporation) distributes 7.84% monthly. Size is — versus — as of October 2026. A higher printed yield is not automatically a better credit book. Compare payout cadence, leverage, and what each one lends against.
What is the current distribution rate for ARCC and MAIN?
ARCC currently distributes 10.18% and MAIN 7.84%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is ARCC or MAIN better for dividend income?
It depends on your goals. ARCC 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.
Can I hold both ARCC and MAIN?
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.
Is ARCC or MAIN safer?
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, so MAIN's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in ARCC vs MAIN generate?
At current rates, $10,000 in ARCC would generate roughly $254.50 cash per distribution ($1,018.00 annually). The same in MAIN would produce about $65.33 cash per distribution ($784.00 annually).
Which has performed better historically, ARCC or MAIN?
ARCC has outpaced MAIN over the trailing twelve months, posting a 3.54% total return against -5.32%. The picture flips over 10 years, though — MAIN has compounded at 13.09% a year, ahead of ARCC at 12.09%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
More comparisons to explore
People also compare ARCC with
People also compare MAIN with
Popular comparisons
Dividend dates and history
ARCC vs MAIN — at a glance
Generated October 4, 2026.
Overview
ARCC and MAIN are both business development companies that lend to and invest in middle-market private businesses. The choice between them hinges on income frequency preference and risk tolerance, since ARCC's higher yield comes with modestly lower market sensitivity but greater quarterly volatility in distributions. ARCC carries a beta of 0.627, meaning it typically moves less than the broad market; MAIN's beta of 0.731 is slightly higher, suggesting marginally greater sensitivity to equity swings.
Who each is best for
ARCC: Fits investors seeking maximum current income from a BDC and comfortable with quarterly lumpy distributions. The lower beta appeals to those wanting modest downside cushion relative to equity market moves.
MAIN: Designed for income-focused investors who value monthly cash flow regularity and prefer a steadier payout. Suits those prioritizing lower volatility in distribution size and willing to accept a reduced yield for greater payment predictability.
Key risks to know
- BDC liquidity and NAV: Both securities are closed-end structures with prices that can diverge meaningfully from underlying net asset value; monitor the discount or premium relative to NAV regularly, as illiquid or stressed borrower portfolios can widen the gap.
- Interest-rate sensitivity: BDCs profit from the spread between borrowing costs and lending rates. Rising rates can compress spreads if portfolio yields lag funding-cost increases, potentially pressuring distributions over time.
- Concentrated middle-market lending: Both funds depend on the health of their underlying portfolio companies, which are typically private and less transparent than public peers. A downturn in commercial lending or recession could elevate defaults across both portfolios.
- Leverage dependency: BDCs routinely use borrowed money to amplify returns; if credit markets tighten or funding costs spike, refinancing risk rises and net earnings per share may decline faster than the underlying business deteriorates.
- Distribution sustainability at ARCC's yield: A 10.18% payout is material and warrants scrutiny of how much comes from net investment income versus return of capital; NAV erosion can occur if distributions exceed sustainable earnings.
Bottom line
If steady monthly income and lower distribution volatility matter most, MAIN's regular cadence and modestly cushioned yield suit a predictable cash-flow approach. If maximum current income and slightly lower market beta appeal more, ARCC's higher payout justifies the quarterly lumpiness, provided you verify that distributions are backed by underlying earnings growth rather than NAV decay. Both carry leverage, interest-rate, and credit 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.
Learn the method
The metrics behind this comparison, explained in the Academy.
Still deciding? Compare them against your own portfolio
See how each business development company fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.
These comparisons follow the Dividend Vision methodology.