ARCC vs HSBC: Which Is the Better Dividend Stock?
As of Nov 2, 2026, HSBC (HSBC Holdings plc) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. ARCC offers the higher yield at 10.05%, HSBC has the higher dividend-safety score, and HSBC looks like the better value (its fair-value estimate is 71% above its share price).
Key facts: ARCC vs HSBC
Data as of · Source: SmarterDividends data
- As of Nov 2, 2026, Ares Capital Corporation (ARCC) has the higher forward dividend yield at 10.05%, versus 4.39% for HSBC Holdings plc (HSBC).
- As of Nov 2, 2026, SmarterDividends grades ARCC's dividend safety C (59/100) and HSBC's B (68/100).
- As of Nov 2, 2026, ARCC pays out 157% of its earnings as dividends and HSBC pays out 54%.
- As of Nov 2, 2026, ARCC's fair-value estimate is 6% below its share price and HSBC's fair-value estimate is 71% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ARCC vs HSBC: Dividend Yield, Safety & Value Compared," updated Nov 2, 2026, https://smarterdividends.com/compare/arcc-vs-hsbc
| Metric | ARCC | HSBC |
|---|---|---|
| Forward yield | 10.05% | 4.39% |
| Annual dividend | $1.92 | $3.75 |
| Payout ratio | 157% | 54% |
| Years of growth | 0 yr | 0 yr |
| 5-yr dividend growth | 3.7% | -13.8% |
| 5-yr total return | -6% | 209% |
| Dividend safety score | 59 (C) | 68 (B) |
| Fair value estimate | $18.03 | $145.65 |
| Upside to fair value | -6% | +71% |
| Frequency | quarterly | quarterly |
| Market cap | $13.8B | $292.1B |
| P/E ratio | 15.7 | 11.2 |
Higher yield
ARCC
10.05%
Safer dividend
HSBC
Grade B
Faster growth
ARCC
3.7%
Better value
HSBC
+71% upside
ARCC vs HSBC — FAQ
Is ARCC or HSBC a better dividend stock?
On the data, HSBC wins more head-to-head categories (5 vs 2). ARCC offers the higher yield (10.05%), while HSBC has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ARCC or HSBC?
ARCC has the higher forward dividend yield at 10.05%, versus 4.39% for HSBC.
Is ARCC or HSBC safer?
HSBC has the higher dividend-safety score (68/100 vs 59/100), reflecting stronger payout coverage and dividend-growth history.
Is ARCC or HSBC better value right now?
As of Nov 2, 2026, HSBC looks like the better value: its fair-value estimate is 71% above its share price (undervalued). For ARCC, its fair-value estimate is 6% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.