AEO vs BABAF: Which Is the Better Dividend Stock?
As of Oct 18, 2026, BABAF (Alibaba Group Holding Limited) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. AEO offers the higher yield at 2.78%, BABAF has the higher dividend-safety score, and AEO looks like the better value (its fair-value estimate is 50% above its share price).
Key facts: AEO vs BABAF
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, American Eagle Outfitters, Inc. (AEO) has the higher forward dividend yield at 2.78%, versus 0.95% for Alibaba Group Holding Limited (BABAF).
- As of Oct 18, 2026, SmarterDividends grades AEO's dividend safety C (62/100) and BABAF's B (76/100).
- By SmarterDividends' count as of Oct 18, 2026, AEO has raised its dividend for 0 consecutive years and BABAF for 2.
- As of Oct 18, 2026, AEO pays out 26% of its earnings as dividends and BABAF pays out 25%.
- As of Oct 18, 2026, AEO's fair-value estimate is 50% above its share price and BABAF's fair-value estimate is 1% below its share price, so AEO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEO vs BABAF: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/aeo-vs-babaf
| Metric | AEO | BABAF |
|---|---|---|
| Forward yield | 2.78% | 0.95% |
| Annual dividend | $0.50 | $0.13 |
| Payout ratio | 26% | 25% |
| Years of growth | 0 yr | 2 yr |
| 5-yr dividend growth | -2.0% | — |
| 5-yr total return | -31% | -13% |
| Dividend safety score | 62 (C) | 76 (B) |
| Fair value estimate | $27.03 | $13.59 |
| Upside to fair value | +50% | -1% |
| Frequency | quarterly | annual |
| Market cap | $3.0B | $274.3B |
| P/E ratio | 9.2 | 26.5 |
Higher yield
AEO
2.78%
Safer dividend
BABAF
Grade B
Faster growth
AEO
-2.0%
Better value
AEO
+50% upside
AEO vs BABAF — FAQ
Is AEO or BABAF a better dividend stock?
On the data, BABAF wins more head-to-head categories (4 vs 3). AEO offers the higher yield (2.78%), while BABAF has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, AEO or BABAF?
AEO has the higher forward dividend yield at 2.78%, versus 0.95% for BABAF.
Is AEO or BABAF safer?
BABAF has the higher dividend-safety score (76/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is AEO or BABAF better value right now?
As of Oct 18, 2026, AEO looks like the better value: its fair-value estimate is 50% above its share price (undervalued). For BABAF, its fair-value estimate is 1% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.