BAC vs MSDL: Which Is the Better Dividend Stock?
As of Oct 18, 2026, BAC and MSDL are closely matched. MSDL offers the higher yield at 13.81%, BAC has the higher dividend-safety score, and MSDL looks like the better value (its fair-value estimate is 40% above its share price).
Key facts: BAC vs MSDL
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Morgan Stanley Direct Lending Fund (MSDL) has the higher forward dividend yield at 13.81%, versus 2.50% for Bank of America Corporation (BAC).
- As of Oct 18, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and MSDL's D (40/100).
- By SmarterDividends' count as of Oct 18, 2026, BAC has raised its dividend for 12 consecutive years and MSDL for 1.
- As of Oct 18, 2026, BAC pays out 26% of its earnings as dividends and MSDL pays out 275%.
- As of Oct 18, 2026, BAC's fair-value estimate is 24% above its share price and MSDL's fair-value estimate is 40% above its share price, so MSDL looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs MSDL: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bac-vs-msdl
| Metric | BAC | MSDL |
|---|---|---|
| Forward yield | 2.50% | 13.81% |
| Annual dividend | $1.28 | $1.80 |
| Payout ratio | 26% | 275% |
| Years of growth | 12 yr | 1 yr |
| 5-yr dividend growth | 8.4% | — |
| 5-yr total return | 15% | — |
| Dividend safety score | 87 (A) | 40 (D) |
| Fair value estimate | $63.43 | $18.25 |
| Upside to fair value | +24% | +40% |
| Frequency | quarterly | quarterly |
| Market cap | $358.2B | $1.1B |
| P/E ratio | 12.2 | 18.9 |
Higher yield
MSDL
13.81%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
MSDL
+40% upside
BAC vs MSDL — FAQ
Is BAC or MSDL a better dividend stock?
BAC and MSDL are closely matched. MSDL has the higher yield; BAC scores better on safety.
Which has a higher dividend yield, BAC or MSDL?
MSDL has the higher forward dividend yield at 13.81%, versus 2.50% for BAC.
Is BAC or MSDL safer?
BAC has the higher dividend-safety score (87/100 vs 40/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or MSDL better value right now?
As of Oct 18, 2026, MSDL 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.