BAC vs FRME: Which Is the Better Dividend Stock?
As of Oct 18, 2026, BAC and FRME are closely matched. FRME offers the higher yield at 3.74%, FRME 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 FRME
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, First Merchants Corporation (FRME) has the higher forward dividend yield at 3.74%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and FRME's A (88/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and FRME for 14.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and FRME pays out 47%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and FRME's fair-value estimate is 43% below its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs FRME: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-frme
| Metric | BAC | FRME |
|---|---|---|
| Forward yield | 2.50% | 3.74% |
| Annual dividend | $1.28 | $1.48 |
| Payout ratio | 26% | 47% |
| Years of growth | 12 yr | 14 yr |
| 5-yr dividend growth | 8.4% | 6.6% |
| 5-yr total return | 15% | -1% |
| Dividend safety score | 87 (A) | 88 (A) |
| Fair value estimate | $63.43 | $22.57 |
| Upside to fair value | +24% | -43% |
| Frequency | quarterly | quarterly |
| Market cap | $358.2B | $2.5B |
| P/E ratio | 12.2 | 12.7 |
Higher yield
FRME
3.74%
Safer dividend
FRME
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+24% upside
BAC vs FRME — FAQ
Is BAC or FRME a better dividend stock?
BAC and FRME are closely matched. FRME has the higher yield; FRME scores better on safety.
Which has a higher dividend yield, BAC or FRME?
FRME has the higher forward dividend yield at 3.74%, versus 2.50% for BAC.
Is BAC or FRME safer?
FRME has the higher dividend-safety score (88/100 vs 87/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or FRME 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 FRME, its fair-value estimate is 43% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.