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.
Data updated August 19, 2026
Best for
- ARCCInvestors who want private-credit income through a business development company.
- MAINInvestors who want higher current income (11.85% vs 9.78% for ARCC).
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
ARCC has outpaced MAIN over the trailing twelve months, posting a -2.63% total return against -4.47%. The picture flips over 10 years, though — MAIN has compounded at 13.67% a year, ahead of ARCC at 12.51%. 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 | 2.06% | -2.63% | 10.83% | 9.74% | 12.51% | 12.00% | 17.8% | 0.33 | 0.46 | -19.3% |
| MAIN | -1.10% | -4.47% | 22.61% | 15.37% | 13.67% | 16.82% | 21.1% | 0.76 | 1.06 | -22.4% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2007” measures every fund from October 5, 2007 — the youngest fund's first trading day — 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 | $19.67 as of August 19, 2026 | $57.81 as of August 19, 2026 |
| Distribution yield | 9.78% | 11.85% |
| Distribution Safety Score™ | 94 | 100 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Monthly |
| Underlying index | — | — |
| Objective | — | — |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.62 | 0.723 |
| Last dividend | $0.4800 | $0.2650 |
| Ex-dividend date | 09/15/2026 | 12/08/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose MAIN if you want higher current income (11.85% vs 9.78% for ARCC).
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 yield | 9.78% | 11.85% |
| Size | — | — |
Income calculator
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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.
MAIN offers the higher yield at 11.85% vs 9.78% for ARCC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, ARCC would generate roughly $81.50/month, while MAIN would produce $98.75/month, 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 0.62 for ARCC and 0.723 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.
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Frequently asked questions
What is the difference between ARCC and MAIN?
Both are business development companies — lenders, not funds. ARCC (Ares Capital Corporation) distributes 9.78% quarterly. MAIN (Main Street Capital Corporation) distributes 11.85% monthly. Size is — versus — as of August 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 yield for ARCC and MAIN?
ARCC currently distributes 9.78% and MAIN 11.85%, based on fund data updated August 2026. Distribution yield 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. MAIN 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 MAIN?
ARCC (Ares Capital Corporation) is a business development company built around BDC exposure, while MAIN (Main Street Capital Corporation) is a business development company built around BDC exposure. They are issued by Ares Management and Main Street Capital respectively.
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 $81.50 per month ($978.00 annually). The same in MAIN would produce about $98.75 per month ($1,185.00 annually).
Which has performed better historically, ARCC or MAIN?
ARCC has outpaced MAIN over the trailing twelve months, posting a -2.63% total return against -4.47%. The picture flips over 10 years, though — MAIN has compounded at 13.67% a year, ahead of ARCC at 12.51%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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ARCC vs MAIN — at a glance
Generated August 16, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
Ares Capital and Main Street Capital are both business development companies that lend to and invest in middle-market private businesses. They differ chiefly in their deployment strategy and income rhythm: Ares emphasizes a diversified, larger-scale portfolio and pays quarterly distributions, while Main Street focuses on smaller, founder-owned companies and distributes monthly.
How they differ
The biggest structural difference is distribution frequency and yield. Main Street pays monthly at an 11.78% distribution rate, while Ares pays quarterly at 9.66%—a spread of over 200 basis points that reflects Main Street's tighter focus on smaller deals where founder-retention is critical and distributions are used to manage shareholder expectations. Second, their portfolio scale and diversification strategies diverge: Ares operates a broader platform with larger average loan sizes, whereas Main Street concentrates on smaller, mid-market deals where it can maintain closer relationships. Third, both carry similar leverage profiles typical of BDCs, but Ares trades at a lower price ($19.87) and exhibits lower beta (0.62 vs. 0.723), suggesting lower volatility, though neither metric should be read as implying lower risk in credit or liquidity terms.
Who each is best for
ARCC: Fits income-focused investors who tolerate moderate equity-market sensitivity and prefer quarterly rhythm with a more conservative yield, accepting lower distributions in exchange for broader portfolio diversification and lower share-price volatility.
MAIN: Fits monthly-income seekers willing to accept higher reported yield and higher systematic risk, drawn to Main Street's niche expertise in smaller founder-owned businesses and the behavioral anchoring that monthly payouts provide.
Key risks to know
- Credit and refinancing risk. Both BDCs lend to private mid-market companies that lack public-market liquidity; economic downturns or rising rates can impair loan performance and limit exit opportunities. Main Street's concentration in smaller, founder-dependent companies may amplify this risk during stress.
- Interest-rate sensitivity. Rising rates compress the spread between BDC borrowing costs and lending yields, pressuring margins and NAV. Main Street's monthly distribution structure may mask temporary NAV erosion, creating a mechanical yield trap if underlying economic returns deteriorate.
- NAV per share erosion at elevated yields. Main Street's 11.78% distribution rate leaves little room for retained earnings; if portfolio returns fall or credit losses rise, NAV per share is likely to drift downward over time. Ares's lower yield provides a cushion.
- Leverage and covenant risk. Both companies use debt to amplify returns, magnifying losses when portfolio companies underperform. Violations of debt covenants can restrict further lending or force asset sales at inopportune times.
Bottom line
If you prioritize lower volatility and a more conservative yield floor, Ares Capital's quarterly structure and lower systematic risk may appeal; if you want monthly distributions and are comfortable with higher yield in exchange for tighter portfolio focus and higher beta, Main Street offers that trade-off. Past performance does not predict future results, and both distributions depend entirely on the credit performance of their underlying private-company portfolios.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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