SmarterDividends

ARCC vs HBCYF: Which Is the Better Dividend Stock?

As of Oct 23, 2026, ARCC and HBCYF are closely matched. ARCC offers the higher yield at 10.22%, ARCC has the higher dividend-safety score, and HBCYF looks like the better value (its fair-value estimate is 53% above its share price).

Key facts: ARCC vs HBCYF

Data as of · Source: SmarterDividends data

  • As of Oct 23, 2026, Ares Capital Corporation (ARCC) has the higher forward dividend yield at 10.22%, versus 4.10% for HSBC Holdings plc (HBCYF).
  • As of Oct 23, 2026, SmarterDividends grades ARCC's dividend safety C (57/100) and HBCYF's C (56/100).
  • As of Oct 23, 2026, ARCC pays out 143% of its earnings as dividends and HBCYF pays out 54%.
  • As of Oct 23, 2026, ARCC's fair-value estimate is 15% above its share price and HBCYF's fair-value estimate is 53% above its share price, so HBCYF looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "ARCC vs HBCYF: Dividend Yield, Safety & Value Compared," updated Oct 23, 2026, https://smarterdividends.com/compare/arcc-vs-hbcyf

MetricARCCHBCYF
Forward yield10.22%4.10%
Annual dividend$1.92$0.75
Payout ratio143%54%
Years of growth0 yr0 yr
5-yr dividend growth3.7%—
5-yr total return-8%226%
Dividend safety score57 (C)56 (C)
Fair value estimate$21.60$27.73
Upside to fair value+15%+53%
Frequencyquarterlyquarterly
Market cap$13.5B$309.2B
P/E ratio13.713.1

Higher yield

ARCC

10.22%

Safer dividend

ARCC

Grade C

Faster growth

ARCC

3.7%

Better value

HBCYF

+53% upside

ARCC vs HBCYF — FAQ

Is ARCC or HBCYF a better dividend stock?

ARCC and HBCYF are closely matched. ARCC has the higher yield; ARCC scores better on safety.

Which has a higher dividend yield, ARCC or HBCYF?

ARCC has the higher forward dividend yield at 10.22%, versus 4.10% for HBCYF.

Is ARCC or HBCYF safer?

ARCC has the higher dividend-safety score (57/100 vs 56/100), reflecting stronger payout coverage and dividend-growth history.

Is ARCC or HBCYF better value right now?

As of Oct 23, 2026, HBCYF looks like the better value: its fair-value estimate is 53% above its share price (undervalued). For ARCC, its fair-value estimate is 15% above its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.