What's the main difference between OBDC and ARCC?

OBDC is a bdc from Blue Owl Capital; ARCC is a bdc from Ares Capital. Two of the largest business development companies (BDCs) for high income, compared on strategy.

Does OBDC or ARCC pay more dividends?

It depends on current figures, which change — use the calculators linked below with each fund's live yield rather than a fixed number. As a rule, higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.

Which is better, OBDC or ARCC?

Neither is universally better — they suit different goals. OBDC fits an investor who wants high income from private-credit (BDC) exposure, taxed as ordinary income; ARCC fits one who wants high income from private-credit (BDC) exposure, taxed as ordinary income. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.

Can I hold both OBDC and ARCC?

Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.

OBDC vs ARCC

Two of the largest business development companies (BDCs) for high income, compared on strategy. Here’s how OBDC and ARCC compare for dividend investors — with a calculator for each so you can model the income yourself.

OBDC

Blue Owl Capital Corporation

Type: BDC
Issuer: Blue Owl Capital
Pays: quarterly

Blue Owl Capital Corporation is a business development company (BDC) that makes direct loans, mostly senior secured first-lien debt, to upper-middle-market US companies. It pays a high quarterly dividend, and its distributions are generally taxed as ordinary income.

OBDC dividend calculator

ARCC

Ares Capital Corporation

Type: BDC
Issuer: Ares Capital
Pays: quarterly

Ares Capital is the largest publicly traded business development company (BDC), lending to US middle-market companies. It pays a high quarterly dividend funded by net investment income, and its distributions are generally taxed as ordinary income.

ARCC dividend calculator

How OBDC and ARCC differ

OBDC — Blue Owl Capital Corporation is a business development company (BDC) that makes direct loans, mostly senior secured first-lien debt, to upper-middle-market US companies. It pays a high quarterly dividend, and its distributions are generally taxed as ordinary income.

ARCC — Ares Capital is the largest publicly traded business development company (BDC), lending to US middle-market companies. It pays a high quarterly dividend funded by net investment income, and its distributions are generally taxed as ordinary income.

In practice the choice comes down to your goal. OBDC suits an investor who wants high income from private-credit (BDC) exposure, taxed as ordinary income, while ARCC suits one who wants high income from private-credit (BDC) exposure, taxed as ordinary income. The two are not mutually exclusive — plenty of portfolios hold a growth-oriented fund and an income-oriented one together. What matters is matching each to its job and not judging a fund on its headline yield alone.

Rather than compare a single snapshot yield (which moves daily), open each calculator and enter current figures: the OBDC calculator and the ARCC calculator. To compare long-term compounding head to head, run the same contributions through the dividend reinvestment calculator with each fund’s assumptions.

Educational comparison only — not a recommendation to buy or sell either fund. Yields and strategies change; verify current figures and consider a licensed advisor.

OBDC vs ARCC FAQ

What's the main difference between OBDC and ARCC?: OBDC is a bdc from Blue Owl Capital; ARCC is a bdc from Ares Capital. Two of the largest business development companies (BDCs) for high income, compared on strategy.
Does OBDC or ARCC pay more dividends?: It depends on current figures, which change — use the calculators linked below with each fund's live yield rather than a fixed number. As a rule, higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.
Which is better, OBDC or ARCC?: Neither is universally better — they suit different goals. OBDC fits an investor who wants high income from private-credit (BDC) exposure, taxed as ordinary income; ARCC fits one who wants high income from private-credit (BDC) exposure, taxed as ordinary income. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.
Can I hold both OBDC and ARCC?: Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.

See all dividend ETF comparisons →