SmarterDividends

BAC vs BBN: Which Is the Better Dividend Stock?

As of Oct 18, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. BBN offers the higher yield at 8.13%, BAC 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: BAC vs BBN

Data as of · Source: SmarterDividends data

  • As of Oct 18, 2026, BlackRock Taxable Municipal Bond Trust (BBN) has the higher forward dividend yield at 8.13%, versus 2.50% for Bank of America Corporation (BAC).
  • As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and BBN's C (50/100).
  • By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and BBN for 1.
  • As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and BBN pays out 120%.
  • As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and BBN's fair-value estimate is 18% below its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "BAC vs BBN: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-bbn

MetricBACBBN
Forward yield2.50%8.13%
Annual dividend$1.28$1.18
Payout ratio26%120%
Years of growth12 yr1 yr
5-yr dividend growth8.4%-3.4%
5-yr total return15%-44%
Dividend safety score87 (A)50 (C)
Fair value estimate$63.43$11.89
Upside to fair value+24%-18%
Frequencyquarterlymonthly
Market cap$358.2B$899.7M
P/E ratio12.214.9

Higher yield

BBN

8.13%

Safer dividend

BAC

Grade A

Faster growth

BAC

8.4%

Better value

BAC

+24% upside

BAC vs BBN — FAQ

Is BAC or BBN a better dividend stock?

On the data, BAC wins more head-to-head categories (7 vs 1). BBN offers the higher yield (8.13%), 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 BBN?

BBN has the higher forward dividend yield at 8.13%, versus 2.50% for BAC.

Is BAC or BBN safer?

BAC has the higher dividend-safety score (87/100 vs 50/100), reflecting stronger payout coverage and dividend-growth history.

Is BAC or BBN 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 BBN, its fair-value estimate is 18% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.