BAC vs MHF: Which Is the Better Dividend Stock?
As of Oct 18, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. MHF offers the higher yield at 6.36%, BAC has the higher dividend-safety score, and MHF looks like the better value (its fair-value estimate is 40% above its share price).
Key facts: BAC vs MHF
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Western Asset Municipal High Income Fund Inc. (MHF) has the higher forward dividend yield at 6.36%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and MHF's C (53/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and MHF for 3.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and MHF pays out 109%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and MHF's fair-value estimate is 40% above its share price, so MHF looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs MHF: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-mhf
| Metric | BAC | MHF |
|---|---|---|
| Forward yield | 2.50% | 6.36% |
| Annual dividend | $1.28 | $0.41 |
| Payout ratio | 26% | 109% |
| Years of growth | 12 yr | 3 yr |
| 5-yr dividend growth | 8.4% | 7.8% |
| 5-yr total return | 15% | -23% |
| Dividend safety score | 87 (A) | 53 (C) |
| Fair value estimate | $63.43 | $9.01 |
| Upside to fair value | +24% | +40% |
| Frequency | quarterly | monthly |
| Market cap | $358.2B | $142.7M |
| P/E ratio | 12.2 | 17.4 |
Higher yield
MHF
6.36%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
MHF
+40% upside
BAC vs MHF — FAQ
Is BAC or MHF a better dividend stock?
On the data, BAC wins more head-to-head categories (6 vs 2). MHF offers the higher yield (6.36%), 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 MHF?
MHF has the higher forward dividend yield at 6.36%, versus 2.50% for BAC.
Is BAC or MHF safer?
BAC has the higher dividend-safety score (87/100 vs 53/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or MHF better value right now?
As of Oct 18, 2026, MHF looks like the better value: its fair-value estimate is 40% 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.