BAC vs HPS: Which Is the Better Dividend Stock?
As of Nov 11, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. HPS offers the higher yield at 11.01%, BAC has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 26% above its share price).
Key facts: BAC vs HPS
Data as of · Source: SmarterDividends data
- As of Nov 11, 2026, John Hancock Preferred Income Fund III (HPS) has the higher forward dividend yield at 11.01%, versus 2.53% for Bank of America Corporation (BAC).
- As of Nov 11, 2026, SmarterDividends grades BAC's dividend safety A (85/100) and HPS's C (57/100).
- By SmarterDividends' count as of Nov 11, 2026, BAC has raised its dividend for 12 consecutive years and HPS for 0.
- As of Nov 11, 2026, BAC pays out 28% of its earnings as dividends and HPS pays out 242%.
- As of Nov 11, 2026, BAC's fair-value estimate is 26% above its share price and HPS's fair-value estimate is 13% above its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs HPS: Dividend Yield, Safety & Value Compared," updated Nov 11, 2026, https://smarterdividends.com/compare/bac-vs-hps
| Metric | BAC | HPS |
|---|---|---|
| Forward yield | 2.53% | 11.01% |
| Annual dividend | $1.28 | $1.32 |
| Payout ratio | 28% | 242% |
| Years of growth | 12 yr | 0 yr |
| 5-yr dividend growth | 8.4% | 0.0% |
| 5-yr total return | 11% | -37% |
| Dividend safety score | 85 (A) | 57 (C) |
| Fair value estimate | $63.64 | $13.54 |
| Upside to fair value | +26% | +13% |
| Frequency | quarterly | monthly |
| Market cap | $349.7B | $385.0M |
| P/E ratio | 12.1 | 21.8 |
Higher yield
HPS
11.01%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+26% upside
BAC vs HPS — FAQ
Is BAC or HPS a better dividend stock?
On the data, BAC wins more head-to-head categories (6 vs 2). HPS offers the higher yield (11.01%), 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 HPS?
HPS has the higher forward dividend yield at 11.01%, versus 2.53% for BAC.
Is BAC or HPS safer?
BAC has the higher dividend-safety score (85/100 vs 57/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or HPS better value right now?
As of Nov 11, 2026, BAC looks like the better value: its fair-value estimate is 26% above its share price (undervalued). For HPS, its fair-value estimate is 13% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.