Dividend comparison
ARCC vs HTGC: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Ares Capital Corporation and Hercules Capital, Inc., side by side. Updated October 21, 2026.
ARCC vs HTGC: key differences
The short answer, from the latest data on this page.
- Income. HTGC pays more income, yielding 12.13% over the last twelve months versus 10.43% for ARCC. That is about $171 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, HTGC returned 50.5% versus 28.1% for ARCC, with dividends reinvested. $10,000 would have grown to $15,046 in HTGC and $12,810 in ARCC.
- Risk. HTGC has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.5%, against -23.3% for ARCC.
- Dividend growth. HTGC grew its yearly payout 7.8% a year over the last 4 years, versus 4.3% for ARCC.
Bottom line: ARCC fits better if you care most about smaller drawdowns. HTGC fits better if you care most about more income today, stronger 5-year returns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | ARCC Ares Capital Corporation | HTGC Hercules Capital, Inc. |
|---|---|---|
| Dividend yield (TTM) | 10.43% | 12.13% |
| Dividend / share (TTM) | $1.92 | $1.95 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.4800 on Sep 30, 2026 | $0.4700 on Aug 18, 2026 |
| Ex-dividend date | Sep 15, 2026 | Aug 11, 2026 |
| Dividend growth (CAGR) | 4.3% over 4 yrs | 7.8% over 4 yrs |
| Price | $18.51 | $16.28 |
| Payout ratio (TTM) | 138.4% | 87.9% |
| Dividend growth streak | — | 2 years |
| Beta | 0.66 | 0.76 |
| Max drawdown (5Y) | -23.3% | -35.5% |
| Market cap | $13.44B | $3.06B |
| Exchange | NASDAQ | NYSE |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
ARCC
$86.91/mo
$1043 /yr at 10.43% yield
HTGC
$101.12/mo
$1213 /yr at 12.13% yield
Dividend history
Total dividends paid per share in each calendar year. ARCC pays quarterly; HTGC pays quarterly.
| Year | ARCC | HTGC |
|---|---|---|
| 2025 | $1.9200 | $2.0900 |
| 2024 | $1.9200 | $2.0000 |
| 2023 | $1.9200 | $1.9000 |
| 2022 | $1.8700 | $1.9700 |
| 2021 | $1.6200 | $1.5500 |
Strategy: Alternative income
Income vehicles outside ordinary stocks and bonds: real estate investment trusts, preferred shares, business development companies that lend to private firms, and energy pipeline partnerships. Each is structured to pass most of its earnings through to shareholders, which is why yields are high. Their payouts depend on rents, loan books or pipeline volumes rather than on corporate dividend policy.
These income streams are sensitive to interest rates and credit conditions, and much of the income is taxed as ordinary income rather than qualified dividends.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $12,810 in ARCC and $15,046 in HTGC.
| Period | ARCC | HTGC |
|---|---|---|
| 1 month | -4.59% | -6.06% |
| 3 months | -3.44% | 0.68% |
| Year to date | -8.50% | -13.50% |
| 1 year | -5.56% | -4.40% |
| 3 years | 18.12% | 31.08% |
| 5 years | 28.10% | 50.46% |
- ARCC
- HTGC
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Quick verdict
ARCC fits better if you care most about smaller drawdowns. HTGC fits better if you care most about more income today, stronger 5-year returns and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how ARCC vs HTGC fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is ARCC or HTGC better for dividend income?
It depends on your goals. ARCC currently yields 10.43% Trailing Twelve Months (TTM) while HTGC yields 12.13%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between ARCC and HTGC?
Ares Capital Corporation (ARCC) is a stock listed on NASDAQ. Hercules Capital, Inc. (HTGC) is a stock listed on NYSE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which has performed better, ARCC or HTGC?
Over the last 5 years, HTGC has the higher total return with dividends reinvested: ARCC returned 28.1% and HTGC returned 50.5%. Past performance does not predict future returns.
Which is riskier, ARCC or HTGC?
Measured by the worst peak-to-trough decline over the last five years, HTGC has been riskier: ARCC fell as much as 23.3% and HTGC as much as 35.5%. Their betas are 0.66 and 0.76.
How often do ARCC and HTGC pay dividends?
Both pay quarterly. The most recent payments were $0.4800 for ARCC and $0.4700 for HTGC.
How much income does $10,000 in ARCC vs HTGC generate?
At current TTM yields, $10,000 in ARCC would generate roughly $86.91 per month ($1043 annually). The same amount in HTGC would produce about $101.12 per month ($1213 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both ARCC and HTGC?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare ARCC vs HTGC with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how ARCC and HTGC fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.