BDC Comparison
ARCC vs OBDC: Which Is the Better Pick in 2026?
A head-to-head comparison of Ares Capital Corporation and Blue Owl Capital Corporation covering yield, cost, risk, and income potential.
Data updated July 21, 2026
Side-by-side snapshot
| ARCC | OBDC | |
|---|---|---|
| Full name | Ares Capital Corporation | Blue Owl Capital Corporation |
| Issuer | Ares Management | Blue Owl Capital |
| Last Close | $18.98 as of July 21, 2026 | $10.87 as of July 21, 2026 |
| Distribution yield | 10.02% | 13.47% |
| Distribution Safety Score™ | 93 | 43 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | — | A specialty finance company that provides direct lending solutions to U.S. middle market companies, investing primarily in senior secured first lien and unitranche loans. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.62 | 0.67 |
| Last dividend | $0.4800 | $0.3100 |
| Ex-dividend date | 06/15/2026 | 06/30/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose OBDC if you want higher current income (13.47% 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 OBDC over the trailing twelve months, posting a -8.34% total return against -19.44%. The lead holds up over 5 years too: ARCC has compounded at 9.16% a year, against 5.39% for OBDC. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | Since Jul 2019 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|
| ARCC | -2.17% | -8.34% | 8.92% | 9.16% | 10.66% | 17.5% | 0.23 | 0.32 | -19.3% |
| OBDC | -10.41% | -19.44% | 2.25% | 5.39% | 5.60% | 19.9% | -0.11 | -0.16 | -23.9% |
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 Jul 2019” measures every fund from July 18, 2019 — 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 OBDC (Blue Owl Capital Corporation) are both quarterly-pay dividend-paying business development companies (BDCs), but they take different approaches.
OBDC offers the higher yield at 13.47% 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 OBDC would produce $112.25/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
ARCC is a business development company, while OBDC is a business development company. Beta is 0.62 for ARCC and 0.67 for OBDC, indicating ARCC is less volatile relative to the market.
Security details
ARCC (Ares Capital Corporation) is a business development company. OBDC (Blue Owl Capital Corporation) is a business development company.
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Frequently asked questions
Is ARCC or OBDC better for dividend income?
It depends on your goals. OBDC 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 OBDC?
ARCC (Ares Capital Corporation) is a business development company, while OBDC (Blue Owl Capital Corporation) is a business development company. They are issued by Ares Management and Blue Owl Capital respectively.
Can I hold both ARCC and OBDC?
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 OBDC generate?
At current rates, $10,000 in ARCC would generate roughly $83.50 per month ($1,002.00 annually). The same in OBDC would produce about $112.25 per month ($1,347.00 annually).
Which has performed better historically, ARCC or OBDC?
ARCC has outpaced OBDC over the trailing twelve months, posting a -8.34% total return against -19.44%. The lead holds up over 5 years too: ARCC has compounded at 9.16% a year, against 5.39% for OBDC. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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ARCC vs OBDC — at a glance
Generated July 2026 from current fund data.
Overview
ARCC and OBDC are both business development companies that generate income by lending to middle-market U.S. businesses, but they differ in lending strategy and yield. ARCC is a larger, more diversified BDC that invests across a range of debt and equity instruments, while OBDC specializes in direct lending through senior secured first lien and unitranche loans. The 330-basis-point difference in distribution yield reflects this structural divergence.
How they differ
The biggest distinction is lending focus: OBDC concentrates on senior secured first lien and unitranche debt, which typically carry lower default risk but also lower yields; ARCC maintains broader flexibility across debt, equity, and hybrid instruments, allowing it to pursue higher-yielding opportunities across its portfolio. Second, OBDC's 13.75% distribution rate substantially exceeds ARCC's 10.45%, a spread that mirrors the higher risk profile of OBDC's lending strategy and pricing environment. Third, ARCC's beta of 0.62 is notably lower than OBDC's 0.67, suggesting ARCC exhibits less sensitivity to broader equity market moves—a reflection of its larger scale and diversified asset mix.
Who each is best for
ARCC: Fits investors seeking BDC exposure with lower leverage to equity market volatility and a moderately high but sustainable dividend, accepting quarterly distributions as the primary return source.
OBDC: Fits investors who prioritize a higher current yield from direct lending and are comfortable with the concentrated credit risk and greater market sensitivity that come with a more specialized lending mandate.
Key risks to know
- Credit concentration in middle-market lending. Both BDCs lend to private companies where public market information is sparse; downturn conditions can impair loan values quickly. OBDC's concentration in first lien and unitranche debt may seem safer, but it also means its portfolio lacks the equity upside ARCC's mixed approach can capture during recoveries.
- NAV erosion risk at high yields. OBDC's 13.75% distribution rate leaves limited room for portfolio appreciation to sustain payouts; if underlying loan values decline or borrower defaults accelerate, distributions may be funded partly from return of capital, eroding shareholder NAV over time.
- Interest rate and refinancing risk. BDC loan portfolios are sensitive to changes in borrower refinancing costs; if rates remain elevated or credit spreads widen, borrowers may struggle to refinance maturing debt, increasing default likelihood for both BDCs.
- Portfolio volatility and mark-to-market losses. Direct lending positions held by BDCs are illiquid and repriced infrequently; when credit markets tighten, unrealized losses can widen sharply, pressuring NAV and potentially forcing distribution cuts.
Bottom line
ARCC offers a lower, more conservative yield with reduced market sensitivity; OBDC pursues higher current income but concentrates its bets on a narrower lending strategy that carries greater refinancing and credit risk. If you value stability and market-insulated income, ARCC's diversified approach and lower beta may appeal; if you seek maximum current yield and can tolerate credit concentration, OBDC's 13.75% distribution fits that profile. Past performance does not predict future results, and both BDCs' ability to sustain their current distributions depends heavily on middle-market credit conditions over the next few years.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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