ALLY vs HSBC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, ALLY (Ally Financial Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. HSBC offers the higher yield at 3.97%, ALLY has the higher dividend-safety score, and ALLY looks like the better value (its fair-value estimate is 71% above its share price).
Key facts: ALLY vs HSBC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, HSBC Holdings plc (HSBC) has the higher forward dividend yield at 3.97%, versus 3.18% for Ally Financial Inc. (ALLY).
- As of Oct 18, 2026, SmarterDividends grades ALLY's dividend safety A (83/100) and HSBC's B (72/100).
- As of Oct 18, 2026, ALLY pays out 28% of its earnings as dividends and HSBC pays out 54%.
- As of Oct 18, 2026, ALLY's fair-value estimate is 71% above its share price and HSBC's fair-value estimate is 44% above its share price, so ALLY looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ALLY vs HSBC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/ally-vs-hsbc
| Metric | ALLY | HSBC |
|---|---|---|
| Forward yield | 3.18% | 3.97% |
| Annual dividend | $1.20 | $3.75 |
| Payout ratio | 28% | 54% |
| Years of growth | 0 yr | 0 yr |
| 5-yr dividend growth | 9.6% | -13.8% |
| 5-yr total return | -18% | 242% |
| Dividend safety score | 83 (A) | 72 (B) |
| Fair value estimate | $64.39 | $135.99 |
| Upside to fair value | +71% | +44% |
| Frequency | quarterly | quarterly |
| Market cap | $11.5B | $323.4B |
| P/E ratio | 8.9 | 13.5 |
Higher yield
HSBC
3.97%
Safer dividend
ALLY
Grade A
Faster growth
ALLY
9.6%
Better value
ALLY
+71% upside
ALLY vs HSBC — FAQ
Is ALLY or HSBC a better dividend stock?
On the data, ALLY wins more head-to-head categories (4 vs 3). HSBC offers the higher yield (3.97%), while ALLY has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ALLY or HSBC?
HSBC has the higher forward dividend yield at 3.97%, versus 3.18% for ALLY.
Is ALLY or HSBC safer?
ALLY has the higher dividend-safety score (83/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is ALLY or HSBC better value right now?
As of Oct 18, 2026, ALLY looks like the better value: its fair-value estimate is 71% above its share price (undervalued). For HSBC, its fair-value estimate is 44% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.