BDC Comparison
ARCC vs MAIN: Which Is the Better Pick in 2026?
A head-to-head comparison of Ares Capital Corporation and Main Street Capital Corporation covering yield, cost, risk, and income potential.
Data updated July 21, 2026
Side-by-side snapshot
| ARCC | MAIN | |
|---|---|---|
| Full name | Ares Capital Corporation | Main Street Capital Corporation |
| Issuer | Ares Management | Main Street Capital |
| Last Close | $18.98 as of July 21, 2026 | $54.59 as of July 21, 2026 |
| Distribution yield | 10.02% | 12.33% |
| Distribution Safety Score™ | 93 | 73 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Monthly |
| Underlying index | — | — |
| Objective | — | — |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.62 | 0.725 |
| Last dividend | $0.4800 | $0.2650 |
| Ex-dividend date | 06/15/2026 | 09/08/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose MAIN if you want higher current income (12.33% vs 10.02% for ARCC).
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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.
Total returns
ARCC has outpaced MAIN over the trailing twelve months, posting a -8.34% total return against -9.34%. The picture flips over 10 years, though — MAIN has compounded at 13.17% a year, ahead of ARCC at 12.79%. 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 | -2.17% | -8.34% | 8.92% | 9.16% | 12.79% | 11.81% | 17.5% | 0.23 | 0.32 | -19.3% |
| MAIN | -8.63% | -9.34% | 18.58% | 14.69% | 13.17% | 16.41% | 20.8% | 0.61 | 0.84 | -22.4% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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.
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 12.33% vs 10.02% 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 $83.50/month, while MAIN would produce $102.75/month, at current distribution rates.
Strategy & risk
ARCC is a business development company, while MAIN is a business development company. Beta is 0.62 for ARCC and 0.725 for MAIN, indicating ARCC is less volatile relative to the market.
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
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, while MAIN (Main Street Capital Corporation) is a business development company. 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.
How much income does $10,000 in ARCC vs MAIN generate?
At current rates, $10,000 in ARCC would generate roughly $83.50 per month ($1,002.00 annually). The same in MAIN would produce about $102.75 per month ($1,233.00 annually).
Which has performed better historically, ARCC or MAIN?
ARCC has outpaced MAIN over the trailing twelve months, posting a -8.34% total return against -9.34%. The picture flips over 10 years, though — MAIN has compounded at 13.17% a year, ahead of ARCC at 12.79%. 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 July 2026 from current fund data.
Overview
ARCC and MAIN are both business development companies that lend to and invest in middle-market private businesses. ARCC is the larger operator, focused on diversified lending across industries and geographies, while MAIN emphasizes control investments and lower-middle-market sponsorships with a more concentrated portfolio. The key distinction is their income profiles: ARCC distributes 10.45% annually on a quarterly schedule, while MAIN pays 13.37% monthly.
How they differ
MAIN's 13.37% distribution yield outpaces ARCC's 10.45% by nearly 300 basis points, reflecting a more aggressive return target and a heavier reliance on interest income from tighter loan concentrations. MAIN also pays monthly, whereas ARCC distributes quarterly—a structural preference that affects reinvestment timing and cash-flow predictability. ARCC trades at $18.78 per share and carries a beta of 0.62, suggesting lower volatility relative to the broader market; MAIN at $52.84 per share has a beta of 0.725, indicating slightly more sensitivity to market moves. The difference in leverage, portfolio composition, and loan origination strategy drives their yield gap—MAIN's control-stake approach and regional focus generate higher spread income but introduce concentration risk that ARCC's broader diversification mitigates.
Who each is best for
ARCC: Fits investors who prioritize lower volatility and diversified middle-market exposure and are comfortable with a 10%+ yield and quarterly income timing.
MAIN: Fits investors seeking maximum current income from a concentrated portfolio of lower-middle-market control investments and who value monthly distributions for cash-flow consistency.
Key risks to know
- Credit risk and portfolio concentration: MAIN's control-investment strategy concentrates exposure to fewer borrowers and industries, heightening default risk if any sponsorship or portfolio company faces unexpected headwinds. ARCC's larger and more diversified loan book reduces this single-name risk but doesn't eliminate it.
- NAV erosion at elevated yields: Both BDCs distribute 10%+ annually, which can erode net asset value if underlying portfolio returns decline or credit losses accelerate. MAIN's 13.37% yield leaves less margin for error than ARCC's 10.45%.
- Interest rate and refinancing risk: Middle-market borrowers are sensitive to rising rates; when credit tightens, loan origination slows and portfolio companies struggle to refinance debt. BDCs that rely on fresh originations to replace maturities face headwinds in higher-rate environments.
- Leverage and balance-sheet risk: Both use debt to fund lending and investments; high leverage amplifies both gains and losses. A sharp spike in funding costs or a portfolio downturn could force distribution cuts or capital raises that dilute existing shareholders.
Bottom line
MAIN's higher yield and monthly payout suit investors hunting maximum current income and comfortable with concentration risk; ARCC's lower volatility and diversification appeal to those seeking steadier, more sustainable distributions. The 300-basis-point yield gap reflects real portfolio differences, not free return—verify whether MAIN's tighter focus aligns with your risk tolerance and income needs. 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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