BAC vs IAF: 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. IAF offers the higher yield at 11.60%, BAC has the higher dividend-safety score, and IAF looks like the better value (its fair-value estimate is 26% above its share price).
Key facts: BAC vs IAF
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Abrdn Australia Equity Fund Inc (IAF) has the higher forward dividend yield at 11.60%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and IAF's C (62/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and IAF for 0.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and IAF pays out 84%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and IAF's fair-value estimate is 26% above its share price, so IAF looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs IAF: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-iaf
| Metric | BAC | IAF |
|---|---|---|
| Forward yield | 2.50% | 11.60% |
| Annual dividend | $1.28 | $1.45 |
| Payout ratio | 26% | 84% |
| Years of growth | 12 yr | 0 yr |
| 5-yr dividend growth | 8.4% | -0.9% |
| 5-yr total return | 15% | -29% |
| Dividend safety score | 87 (A) | 62 (C) |
| Fair value estimate | $63.43 | $15.75 |
| Upside to fair value | +24% | +26% |
| Frequency | quarterly | quarterly |
| Market cap | $358.2B | $119.8M |
| P/E ratio | 12.2 | 7.2 |
Higher yield
IAF
11.60%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
IAF
+26% upside
BAC vs IAF — FAQ
Is BAC or IAF a better dividend stock?
On the data, BAC wins more head-to-head categories (5 vs 3). IAF offers the higher yield (11.60%), 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 IAF?
IAF has the higher forward dividend yield at 11.60%, versus 2.50% for BAC.
Is BAC or IAF safer?
BAC has the higher dividend-safety score (87/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or IAF better value right now?
As of Oct 18, 2026, IAF looks like the better value: its fair-value estimate is 26% 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.