AJG vs BAC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, AJG and BAC are closely matched. BAC offers the higher yield at 2.50%, AJG has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 24% above its share price).
Key facts: AJG vs BAC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Bank of America Corporation (BAC) has the higher forward dividend yield at 2.50%, versus 1.10% for Arthur J. Gallagher & Co. (AJG).
- As of Oct 18, 2026, SmarterDividends grades AJG's dividend safety A (97/100) and BAC's A (87/100).
- By SmarterDividends' count as of Oct 18, 2026, AJG has raised its dividend for 15 consecutive years and BAC for 12.
- As of Oct 18, 2026, AJG pays out 45% of its earnings as dividends and BAC pays out 26%.
- As of Oct 18, 2026, AJG's fair-value estimate is 55% below its share price and BAC's fair-value estimate is 24% above its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AJG vs BAC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/ajg-vs-bac
| Metric | AJG | BAC |
|---|---|---|
| Forward yield | 1.10% | 2.50% |
| Annual dividend | $2.80 | $1.28 |
| Payout ratio | 45% | 26% |
| Years of growth | 15 yr | 12 yr |
| 5-yr dividend growth | 7.6% | 8.4% |
| 5-yr total return | 56% | 15% |
| Dividend safety score | 97 (A) | 87 (A) |
| Fair value estimate | $115.43 | $63.43 |
| Upside to fair value | -55% | +24% |
| Frequency | quarterly | quarterly |
| Market cap | $65.3B | $358.2B |
| P/E ratio | 42.3 | 12.2 |
Higher yield
BAC
2.50%
Safer dividend
AJG
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+24% upside
AJG vs BAC — FAQ
Is AJG or BAC a better dividend stock?
AJG and BAC are closely matched. BAC has the higher yield; AJG scores better on safety.
Which has a higher dividend yield, AJG or BAC?
BAC has the higher forward dividend yield at 2.50%, versus 1.10% for AJG.
Is AJG or BAC safer?
AJG has the higher dividend-safety score (97/100 vs 87/100), reflecting stronger payout coverage and dividend-growth history.
Is AJG or BAC better value right now?
As of Oct 18, 2026, BAC looks like the better value: its fair-value estimate is 24% above its share price (undervalued). For AJG, its fair-value estimate is 55% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.