BAC vs LYG: Which Is the Better Dividend Stock?
As of July 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. LYG offers the higher yield at 3.36%, BAC has the higher dividend-safety score, and BAC trades at the larger discount to fair value (+66%).
| Metric | BAC | LYG |
|---|---|---|
| Forward yield | 1.83% | 3.36% |
| Annual dividend | $1.12 | $0.20 |
| Payout ratio | 26% | 44% |
| Years of growth | 12 yr | 4 yr |
| 5-yr dividend growth | 8.4% | — |
| 5-yr total return | 47% | 154% |
| Dividend safety score | 85 (A) | 59 (C) |
| Fair value estimate | $101.75 | $9.05 |
| Upside to fair value | +66% | +52% |
| Frequency | quarterly | semiannual |
| Market cap | $424.0B | $85.4B |
| P/E ratio | 14.1 | 14.7 |
Higher yield
LYG
3.36%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+66% upside
BAC vs LYG — FAQ
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