BAC vs DMO: 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. DMO offers the higher yield at 14.81%, BAC has the higher dividend-safety score, and DMO looks like the better value (its fair-value estimate is 66% above its share price).
Key facts: BAC vs DMO
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Western Asset Mortgage Opportunity Fund Inc. (DMO) has the higher forward dividend yield at 14.81%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and DMO's D (46/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and DMO for 3.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and DMO pays out 173%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and DMO's fair-value estimate is 66% above its share price, so DMO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs DMO: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-dmo
| Metric | BAC | DMO |
|---|---|---|
| Forward yield | 2.50% | 14.81% |
| Annual dividend | $1.28 | $1.44 |
| Payout ratio | 26% | 173% |
| Years of growth | 12 yr | 3 yr |
| 5-yr dividend growth | 8.4% | -0.1% |
| 5-yr total return | 15% | -38% |
| Dividend safety score | 87 (A) | 46 (D) |
| Fair value estimate | $63.43 | $16.15 |
| Upside to fair value | +24% | +66% |
| Frequency | quarterly | monthly |
| Market cap | $358.2B | $111.1M |
| P/E ratio | 12.2 | 11.3 |
Higher yield
DMO
14.81%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
DMO
+66% upside
BAC vs DMO — FAQ
Is BAC or DMO a better dividend stock?
On the data, BAC wins more head-to-head categories (5 vs 3). DMO offers the higher yield (14.81%), 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 DMO?
DMO has the higher forward dividend yield at 14.81%, versus 2.50% for BAC.
Is BAC or DMO safer?
BAC has the higher dividend-safety score (87/100 vs 46/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or DMO better value right now?
As of Oct 18, 2026, DMO looks like the better value: its fair-value estimate is 66% 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.