ARCC vs BAC: Which Is the Better Dividend Stock?
As of Nov 2, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. ARCC offers the higher yield at 10.05%, BAC has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 27% above its share price).
Key facts: ARCC vs BAC
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 2.56% for Bank of America Corporation (BAC).
- As of Nov 2, 2026, SmarterDividends grades ARCC's dividend safety C (59/100) and BAC's A (87/100).
- By SmarterDividends' count as of Nov 2, 2026, ARCC has raised its dividend for 0 consecutive years and BAC for 12.
- As of Nov 2, 2026, ARCC pays out 157% of its earnings as dividends and BAC pays out 28%.
- As of Nov 2, 2026, ARCC's fair-value estimate is 6% below its share price and BAC's fair-value estimate is 27% above its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ARCC vs BAC: Dividend Yield, Safety & Value Compared," updated Nov 2, 2026, https://smarterdividends.com/compare/arcc-vs-bac
| Metric | ARCC | BAC |
|---|---|---|
| Forward yield | 10.05% | 2.56% |
| Annual dividend | $1.92 | $1.28 |
| Payout ratio | 157% | 28% |
| Years of growth | 0 yr | 12 yr |
| 5-yr dividend growth | 3.7% | 8.4% |
| 5-yr total return | -6% | 12% |
| Dividend safety score | 59 (C) | 87 (A) |
| Fair value estimate | $18.03 | $63.43 |
| Upside to fair value | -6% | +27% |
| Frequency | quarterly | quarterly |
| Market cap | $13.8B | $345.1B |
| P/E ratio | 15.7 | 11.9 |
Higher yield
ARCC
10.05%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+27% upside
ARCC vs BAC — FAQ
Is ARCC or BAC a better dividend stock?
On the data, BAC wins more head-to-head categories (6 vs 2). ARCC offers the higher yield (10.05%), while BAC 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 BAC?
ARCC has the higher forward dividend yield at 10.05%, versus 2.56% for BAC.
Is ARCC or BAC safer?
BAC has the higher dividend-safety score (87/100 vs 59/100), reflecting stronger payout coverage and dividend-growth history.
Is ARCC or BAC better value right now?
As of Nov 2, 2026, BAC looks like the better value: its fair-value estimate is 27% 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.