BDC Comparison
OBDC vs ARCC: Same Structure, Different Lending Books
A head-to-head of Blue Owl Capital Corporation and Ares Capital covering payout schedule, size, and why a yield gap is not the whole story.
Updated October 2, 2026
How these figures are calculated: methodology.
Best for
- ARCCInvestors who want private-credit income through a business development company.
- OBDCInvestors who want higher current income (13.40% vs 10.18% 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
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 OBDC over the trailing twelve months, posting a 3.54% total return against -6.88%. The lead holds up over 5 years too: ARCC has compounded at 8.06% a year, against 5.04% for OBDC. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | 3Y annualized | 5Y annualized | Since Jul 2019 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|
| ARCC | -0.37% | 3.54% | 9.25% | 8.06% | 10.63% | 17.7% | 0.25 | 0.34 | -19.3% |
| OBDC | -9.94% | -6.88% | 2.56% | 5.04% | 5.51% | 20.2% | -0.10 | -0.14 | -23.9% |
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 Jul 2019” measures every fund from July 18, 2019 — 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 |  OBDC |
|---|---|---|
| Full name | Ares Capital Corporation | Blue Owl Capital Corporation |
| Issuer | Ares Management | Blue Owl Capital |
| Last Close | $18.86 as of October 2, 2026 | $10.30 as of October 2, 2026 |
| Distribution rate | 10.18% | 13.40% |
| Trailing 12-month yield | 10.18% | 13.40% |
| Distribution Safety Score™ | 94 | 71 |
| Safety-Adjusted Yield | 9.57% | 9.51% |
| 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 | 0.627 | 0.678 |
| Last dividend | $0.48 | $0.31 declared, pays 10/15/2026 |
| Ex-dividend date | 09/15/2026 | 09/30/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose OBDC if you want higher current income (13.40% vs 10.18% for ARCC).
ARCC vs OBDC: 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 | OBDC | |
|---|---|---|
| Structure | Business development company | Business development company |
| Payout cadence | quarterly | quarterly |
| Distribution rate | 10.18% | 13.40% |
| 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 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 13.40% vs 10.18% for ARCC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
Still deciding? Track ARCC & OBDC 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 OBDC would produce $335.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
ARCC is a business development company built around BDC exposure, while OBDC is a business development company built around BDC exposure. Beta is 0.627 for ARCC and 0.678 for OBDC, making ARCC the less volatile of the two by this measure.
Security details
ARCC (Ares Capital Corporation) is a business development company. OBDC (Blue Owl 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 OBDC and ARCC?
Both are business development companies — lenders, not funds. OBDC (Blue Owl Capital Corporation) distributes 13.40% quarterly. ARCC (Ares Capital Corporation) distributes 10.18% quarterly. Size is — versus — as of October 2026. A higher printed yield is not automatically a better credit book.
What is the current distribution rate for ARCC and OBDC?
ARCC currently distributes 10.18% and OBDC 13.40%, 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 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 built around BDC exposure, while OBDC (Blue Owl Capital Corporation) is a business development company built around BDC exposure. 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.
Is ARCC or OBDC safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — ARCC scores 94, OBDC scores 71, so ARCC'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 OBDC generate?
At current rates, $10,000 in ARCC would generate roughly $254.50 cash per distribution ($1,018.00 annually). The same in OBDC would produce about $335.00 cash per distribution ($1,340.00 annually).
Which has performed better historically, ARCC or OBDC?
ARCC has outpaced OBDC over the trailing twelve months, posting a 3.54% total return against -6.88%. The lead holds up over 5 years too: ARCC has compounded at 8.06% a year, against 5.04% for OBDC. 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
Popular comparisons
ARCC vs OBDC — at a glance
Generated October 4, 2026.
Overview
Ares Capital Corporation and Blue Owl Capital Corporation are both business development companies that source income from middle-market lending. The key difference lies in their lending focus: Ares maintains a diversified portfolio across debt and equity investments in a range of industries, while Blue Owl concentrates on direct lending through senior secured first lien and unitranche loans to U.S. middle-market borrowers.
How they differ
OBDC targets a narrower, higher-yielding lending niche—first-lien and unitranche senior secured loans—while ARCC diversifies across both debt and equity positions in various market segments. This structural difference flows through to yield: OBDC distributes 13.40%, compared to ARCC's 10.18%, a gap of roughly 220 basis points. ARCC has a lower beta of 0.627, suggesting somewhat less sensitivity to equity market swings than OBDC's 0.678. Both pay quarterly distributions and operate as publicly traded business development companies, so they face identical regulatory constraints and pass-through tax treatment.
Who each is best for
ARCC: Fits investors seeking a diversified BDC income stream with a lower volatility profile, accepting a modestly lower yield in exchange for exposure to both secured and unsecured debt as well as equity investments across multiple middle-market sectors.
OBDC: Designed for income-focused investors comfortable with higher distribution rates and concentrated lending strategy exposure, and who view first-lien senior secured loans as a more stable collateral cushion than mixed-vintage BDC portfolios.
Key risks to know
- Leverage and coverage risk. Both BDCs use leverage to amplify returns, which magnifies downside in a credit downturn. If borrower defaults accelerate or refinancing costs spike, distributions may compress faster than equity markets alone would suggest.
- Net asset value erosion. At distribution rates this high, NAV per share can erode if underlying asset valuations decline or loan portfolio returns fall short of payout levels. OBDC's 13.40% yield leaves little margin if credit quality deteriorates.
- Credit cycle timing. Both are direct lenders to middle-market companies, making them vulnerable to economic slowdown when covenant breaches and non-accruals rise. A recession would likely spike charge-offs across both portfolios simultaneously.
- Concentration in senior secured lending (OBDC specific). Blue Owl's focus on first-lien loans reduces diversification relative to ARCC. If senior secured spreads compress in a lower-rate environment or refinancing demand drops, yield headroom could shrink.
- Interest rate and refinancing risk. Both BDCs hold floating-rate debt that benefits from rising rates but face refinancing pressure if spreads widen or the credit cycle deteriorates mid-cycle.
Bottom line
If you prioritize yield and accept concentrated exposure to senior secured lending as a risk, OBDC's 13.40% rate reflects its narrower strategy. If you value diversification across debt and equity alongside a lower volatility footprint, ARCC offers 10.18% with beta of 0.627. Both are leveraged vehicles sensitive to credit conditions and refinancing costs; past performance does not predict future distributions or NAV stability.
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.