About ARCC Dividend Returns
Ares Capital Corporation (ARCC) is a dividend-paying stock. When dividends are reinvested through a DRIP (Dividend Reinvestment Plan), they purchase additional shares, which then generate their own dividends—creating a compounding effect that can significantly boost long-term returns.
How We Calculate Total Return
Our total return calculator simulates dividend reinvestment (DRIP) by assuming each dividend payment is used to purchase additional shares at the closing price on the ex-dividend date. This methodology provides an accurate representation of how a dividend reinvestment plan would perform.
Frequently Asked Questions
Q1What is the total return of ARCC over the past year?
Ares Capital Corporation (ARCC) delivered a total return of 3.60% over the past year when dividends are reinvested. The price-only return was -5.75%, meaning dividends contributed an additional 9.35 percentage points to total returns.
Q2How much would $10,000 invested in ARCC be worth today?
A $10,000 investment in Ares Capital Corporation one year ago would be worth $10,360 today with dividends reinvested (DRIP). Without reinvesting dividends, the same investment would be worth $9,425. Dividend reinvestment added $935 to the portfolio value.
Q3Does ARCC pay dividends?
Yes, Ares Capital Corporation (ARCC) pays dividends. In the last year, ARCC paid approximately $0.38 per share in dividends (1.98% yield). Reinvesting these dividends through a DRIP can significantly boost long-term returns — over 20+ years, dividend compounding can account for 30–50% of total returns for dividend-paying stocks.
Q4Did ARCC beat the S&P 500?
No, Ares Capital Corporation (ARCC) underperformed the S&P 500 by 24.84 percentage points over the past year. ARCC delivered a total return of 3.60%, compared to the S&P 500's 28.44%. This means a passive S&P 500 index fund outperformed ARCC by 24.84pp during this period.
Q5What is ARCC's worst drawdown?
Ares Capital Corporation (ARCC) experienced a maximum drawdown of -24.95% over the past year, declining from its peak on 2025-07-17 to its trough on 2026-03-27. The stock has not yet fully recovered to its prior peak. Maximum drawdown measures the worst peak-to-trough decline and is an important risk metric for investors.
Q6What is ARCC's long-term total return over 10, 20, or 30 years?
Here are Ares Capital Corporation (ARCC)'s long-term returns with dividends reinvested. Over 10 years, the total return is 142.3% (9.3% CAGR) — $10,000 would have grown to $24,228. Over 20 years: 201.4% total return (5.7% CAGR) — $10,000 → $30,145. Over 30 years: 260.3% total return (4.4% CAGR) — $10,000 → $36,025. Long-term investors benefit from compounding: dividends buy additional shares, which generate their own dividends, creating an exponential growth effect.
Q7What was ARCC's best and worst year?
Ares Capital Corporation's best calendar year was 2009 with a total return of 83.4%. Its worst year was 2008 with a total return of -56.0%. This range shows the volatility investors should expect — the difference between the best and worst year is 139.4 percentage points.
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