Computed head-to-head · 6 dimensions
ARCC vs BNS
Ares Capital Corp. versus Bank of Nova Scotia — yield, safety, growth trend, cost, scale, and tax treatment.
BNS wins 3–2 on our six-dimension comparison, but ARCC can still be the better fit depending on your priorities — see each dimension below.
BNS wins this comparison 3–2 across 6 dimensions. BNS yields 3.68% — lower than ARCC's 9.62% — and carries a 7.8/10 dividend safety score (Solid) vs 3.8/10 for ARCC (Weak). BNS wins 3–2 on our six-dimension comparison, but ARCC can still be the better fit depending on your priorities — see each dimension below.
On yield alone, ARCC generates 9.62% vs 3.68% — a 5.94% difference that translates to $5,940 more per year on a $100,000 investment. On dividend safety, BNS scores 7.8/10 (Solid) vs 3.8/10 (Weak) for ARCC — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | ARCC | BNS | Winner |
|---|---|---|---|
| Yield | 9.62% | 3.68% | ARCC wins |
| Dividend safety | 3.8/10 | 7.8/10 | BNS wins |
| Growth trend | +0.62% vs 5y | -1.84% vs 5y | BNS wins |
| Volatility (beta) | 0.62 | 1.21 | ARCC wins |
| Scale | $14.3B | $107.2B | BNS wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 3 wins | BNS wins |
Dimension by dimension
ARCC wins on yield (9.62% vs 3.68%)
On a $10,000 investment that's about $594 more in annual dividend income before taxes — though higher yield often comes with higher risk.
ARCC's higher yield (9.62%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus BNS's 3.68% — especially if the higher yield is driven by covered calls or a falling share price.
BNS wins on safety (7.8/10 vs 3.8/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. BNS scores better on the weighted average of those factors.
BNS (7.8/10) scores 4.0 points higher than ARCC (3.8/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
BNS shows healthier dividend-vs-price trend
BNS's yield is 1.84% below its 5y average, versus 0.62% for ARCC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
ARCC is less volatile (beta 0.62 vs 1.21)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
BNS is 7.5× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
Which is better for income, ARCC or BNS?
BNS wins 3–2 on our six-dimension comparison, but ARCC can still be the better fit depending on your priorities — see each dimension below.
ARCC vs BNS: which has a higher dividend yield?
ARCC yields 9.62% and BNS yields 3.68%. On a $10,000 investment that's about $594 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is ARCC or BNS a safer dividend in 2026?
ARCC scores 3.8/10 (Weak) on the Infnits dividend safety scale. BNS scores 7.8/10 (Solid). BNS is the safer pick on our scoring model.
Which has better dividend growth, ARCC or BNS?
BNS's yield is 1.84% below its 5y average, versus 0.62% for ARCC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
ARCC vs BNS: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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