BAC vs LYG: Which Is the Better Dividend Stock?
As of Nov 5, 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 4.14%, BAC has the higher dividend-safety score, and LYG looks like the better value (its fair-value estimate is 75% above its share price).
Key facts: BAC vs LYG
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Lloyds Banking Group plc (LYG) has the higher forward dividend yield at 4.14%, versus 2.48% for Bank of America Corporation (BAC).
- As of Nov 5, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and LYG's C (60/100).
- By SmarterDividends' count as of Nov 5, 2026, BAC has raised its dividend for 12 consecutive years and LYG for 4.
- As of Nov 5, 2026, BAC pays out 28% of its earnings as dividends and LYG pays out 42%.
- As of Nov 5, 2026, BAC's fair-value estimate is 25% above its share price and LYG's fair-value estimate is 75% above its share price, so LYG looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs LYG: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/bac-vs-lyg
| Metric | BAC | LYG |
|---|---|---|
| Forward yield | 2.48% | 4.14% |
| Annual dividend | $1.28 | $0.22 |
| Payout ratio | 28% | 42% |
| Years of growth | 12 yr | 4 yr |
| 5-yr dividend growth | 8.4% | — |
| 5-yr total return | 12% | 106% |
| Dividend safety score | 87 (A) | 60 (C) |
| Fair value estimate | $63.43 | $9.07 |
| Upside to fair value | +25% | +75% |
| Frequency | quarterly | quarterly |
| Market cap | $349.9B | $74.1B |
| P/E ratio | 12.1 | 10.0 |
Higher yield
LYG
4.14%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
LYG
+75% upside
BAC vs LYG — FAQ
Is BAC or LYG a better dividend stock?
On the data, BAC wins more head-to-head categories (4 vs 3). LYG offers the higher yield (4.14%), 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 LYG?
LYG has the higher forward dividend yield at 4.14%, versus 2.48% for BAC.
Is BAC or LYG safer?
BAC has the higher dividend-safety score (87/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or LYG better value right now?
As of Nov 5, 2026, LYG looks like the better value: its fair-value estimate is 75% above its share price (undervalued). For BAC, its fair-value estimate is 25% above its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.