BAC vs LYG: Which Is the Better Dividend Stock?
As of September 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. LYG offers the higher yield at 3.75%, BAC has the higher dividend-safety score, and LYG trades at the larger discount to fair value (+108%).
| Metric | BAC | LYG |
|---|---|---|
| Forward yield | 2.22% | 3.75% |
| Annual dividend | $1.28 | $0.22 |
| Payout ratio | 26% | 47% |
| Years of growth | 12 yr | 4 yr |
| 5-yr dividend growth | 8.4% | — |
| 5-yr total return | 21% | 114% |
| Dividend safety score | 86 (A) | 60 (C) |
| Fair value estimate | $91.91 | $12.09 |
| Upside to fair value | +59% | +108% |
| Frequency | quarterly | quarterly |
| Market cap | $403.7B | $83.9B |
| P/E ratio | 13.3 | 13.5 |
Higher yield
LYG
3.75%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
LYG
+108% upside
BAC vs LYG — FAQ
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