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.
Data updated August 19, 2026
Best for
- ARCCInvestors who want private-credit income through a business development company.
- OBDCInvestors who want higher current income (12.87% 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 OBDC over the trailing twelve months, posting a -2.63% total return against -12.12%. The lead holds up over 5 years too: ARCC has compounded at 9.74% a year, against 5.71% 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 | 2.06% | -2.63% | 10.83% | 9.74% | 11.20% | 17.8% | 0.33 | 0.46 | -19.3% |
| OBDC | -6.62% | -12.12% | 4.53% | 5.71% | 6.15% | 20.3% | -0.00 | -0.00 | -23.9% |
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 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.
Side-by-side snapshot
| Metric | ARCC | OBDC |
|---|---|---|
| Full name | Ares Capital Corporation | Blue Owl Capital Corporation |
| Issuer | Ares Management | Blue Owl Capital |
| Last Close | $19.67 as of August 19, 2026 | $11.41 as of August 19, 2026 |
| Distribution yield | 9.78% | 12.87% |
| Distribution Safety Score™ | 94 | 55 |
| 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 | 0.669 |
| Last dividend | $0.4800 | $0.3100 |
| Ex-dividend date | 09/15/2026 | 08/31/2026 |
Bottom lineChoose ARCC if you want private-credit income through a business development company. Choose OBDC if you want higher current income (12.87% vs 9.78% 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 yield | 9.78% | 12.87% |
| Size | — | — |
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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 12.87% 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 OBDC would produce $107.25/month, 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 0.62 for ARCC and 0.669 for OBDC — effectively similar market sensitivity.
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
What is the difference between OBDC and ARCC?
Both are business development companies — lenders, not funds. OBDC (Blue Owl Capital Corporation) distributes 12.87% quarterly. ARCC (Ares Capital Corporation) distributes 9.78% quarterly. Size is — versus — as of August 2026. A higher printed yield is not automatically a better credit book.
What is the current distribution yield for ARCC and OBDC?
ARCC currently distributes 9.78% and OBDC 12.87%, 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 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 55, 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 $81.50 per month ($978.00 annually). The same in OBDC would produce about $107.25 per month ($1,287.00 annually).
Which has performed better historically, ARCC or OBDC?
ARCC has outpaced OBDC over the trailing twelve months, posting a -2.63% total return against -12.12%. The lead holds up over 5 years too: ARCC has compounded at 9.74% a year, against 5.71% 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 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
ARCC and OBDC are both business development companies that earn income by lending to mid-market businesses and distributing that income to shareholders quarterly. ARCC is the larger, more diversified lender with a 9.66% distribution rate, while OBDC focuses specifically on direct lending through senior secured and unitranche loans and pays out 12.68% annually—a meaningful gap that reflects both strategy and risk profile differences.
How they differ
The biggest structural difference is lending focus: OBDC concentrates on direct lending to middle-market companies through first lien and unitranche debt instruments, while ARCC runs a broader specialty finance platform across multiple strategies and geographies. OBDC's higher distribution rate (12.68% vs. 9.66%) reflects the tighter risk-return tradeoff in direct lending—higher yields on secured debt, but also greater exposure to credit cycles and loan-level defaults. ARCC carries a lower beta of 0.62 compared to OBDC's 0.669, suggesting somewhat less sensitivity to broader market moves, though both are lower-volatility BDCs relative to equities.
Who each is best for
ARCC: Fits investors seeking steady quarterly income from a diversified lending platform with demonstrated scale and lower relative volatility, and who can tolerate the credit risk inherent in mid-market lending.
OBDC: Fits investors comfortable with higher yield in exchange for concentrated exposure to direct lending cycles and who understand that a 12%+ payout requires consistent loan performance and reinvestment discipline.
Key risks to know
- NAV erosion at elevated yields: OBDC's 12.68% distribution rate leaves little room for loan losses or capital gains to offset distributions. If underlying loan values decline or defaults rise, NAV may erode despite the headline yield.
- Direct lending credit concentration: OBDC's narrow focus on senior secured loans to mid-market companies means portfolio performance depends on a single strategy's performance. A credit cycle downturn or sector-specific stress could affect the entire loan book at once.
- Rising interest rate sensitivity: Both BDCs benefit from floating-rate loan portfolios in a higher-rate environment, but refinancing risk rises if rates fall sharply or if borrowers face extended stress; OBDC's more concentrated book magnifies this risk.
- Equity market correlation: Despite lower betas, BDC NAVs are sensitive to equity valuations and credit spreads. Shareholder redemptions or equity market stress can force portfolio repositioning.
Bottom line
If you want broader lending exposure with lower volatility and a sustainable 9.66% yield, ARCC's scale and diversification stand out. If you prioritize maximum current income and understand the trade-off of higher credit and concentration risk, OBDC's 12.68% distribution may justify closer examination—but verify that the yield isn't masking deteriorating loan quality. 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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