BAC vs BBDC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. BBDC offers the higher yield at 12.32%, BAC has the higher dividend-safety score, and BBDC looks like the better value (its fair-value estimate is 43% above its share price).
Key facts: BAC vs BBDC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Barings BDC, Inc. (BBDC) has the higher forward dividend yield at 12.32%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and BBDC's D (45/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and BBDC for 6.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and BBDC pays out 127%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and BBDC's fair-value estimate is 43% above its share price, so BBDC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs BBDC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-bbdc
| Metric | BAC | BBDC |
|---|---|---|
| Forward yield | 2.50% | 12.32% |
| Annual dividend | $1.28 | $1.04 |
| Payout ratio | 26% | 127% |
| Years of growth | 12 yr | 6 yr |
| 5-yr dividend growth | 8.4% | 12.9% |
| 5-yr total return | 15% | -22% |
| Dividend safety score | 87 (A) | 45 (D) |
| Fair value estimate | $63.43 | $12.04 |
| Upside to fair value | +24% | +43% |
| Frequency | quarterly | quarterly |
| Market cap | $358.2B | $883.7M |
| P/E ratio | 12.2 | 10.3 |
Higher yield
BBDC
12.32%
Safer dividend
BAC
Grade A
Faster growth
BBDC
12.9%
Better value
BBDC
+43% upside
BAC vs BBDC — FAQ
Is BAC or BBDC a better dividend stock?
On the data, BAC wins more head-to-head categories (5 vs 3). BBDC offers the higher yield (12.32%), 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, BAC or BBDC?
BBDC has the higher forward dividend yield at 12.32%, versus 2.50% for BAC.
Is BAC or BBDC safer?
BAC has the higher dividend-safety score (87/100 vs 45/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or BBDC better value right now?
As of Oct 18, 2026, BBDC looks like the better value: its fair-value estimate is 43% above its share price (undervalued). For BAC, its fair-value estimate is 24% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.