ARCC vs CGBD: Which BDC is the Better Dividend Buy?
A side-by-side comparison of Ares Capital Corporation (ARCC) and Carlyle Secured Lending, Inc. (CGBD) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
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ARCC vs CGBD: Key Metrics Head-to-Head
| Metric | ARCC | CGBD | Edge |
|---|---|---|---|
| Dividend Yield | 10.02% | 14.83% | CGBD |
| Premium / Discount to NAV | -1.08% | -35.49% | ARCC |
| Market Capitalization | $12.1B | $0.62B | ARCC |
| Trailing Stock Price | $19.17 | $10.45 | — |
| Net Asset Value (NAV) | $19.38 | $16.2 | — |
| Price vs NAV (Valuation) | Discount | Discount | ARCC |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.28x | 1.21x | CGBD |
About ARCC — Ares Capital Corporation
Ares Capital Corporation is one of the largest and most diversified publicly traded business development companies. The company provides senior secured loans, mezzanine debt, and equity investments to middle-market companies across a range of industries. With a portfolio of over $20 billion and a track record dating back to 2004, ARCC is widely considered the bellwether BDC.
About CGBD — Carlyle Secured Lending, Inc.
Carlyle Secured Lending, Inc. is an externally managed BDC advised by Carlyle Global Credit Investment Management. CGBD originates and invests in senior secured first lien, unitranche, and second lien loans to U.S. middle-market companies with EBITDA between $5 million and $50 million. The portfolio is heavily weighted toward floating-rate first lien instruments, reflecting Carlyle's institutional credit underwriting discipline and global sourcing capabilities.
How to Choose Between ARCC and CGBD
When comparing two Business Development Companies, the right choice depends on your income objective:
- Dividend yield matters most for immediate income — the higher yielder wins on cash flow, but make sure it's covered by investment income.
- NAV premium/discount matters for valuation — a discount to NAV implies you're buying assets below their accounting value, a premium implies the market expects above-average growth.
- Market cap reflects liquidity and scale — larger BDCs typically have lower borrowing costs and better portfolio diversification.
- Leverage cuts both ways — it amplifies dividend yield but increases sensitivity to credit defaults and interest rate moves.
Both ARCC and CGBD are Regulated Investment Company (RIC)-structured BDCs required to distribute at least 90% of taxable income to shareholders, which is what produces their above-average dividend yields. Use the comparison table above as a starting point, then read each full profile before making an investment decision.
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Not Investment Advice: This comparison is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor. Read our full Editorial Policy and Terms of Service.