BAC vs RY: Which Is the Better Dividend Stock?
As of Oct 23, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. BAC offers the higher yield at 2.51%, BAC has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 24% above its share price).
Key facts: BAC vs RY
Data as of · Source: SmarterDividends data
- As of Oct 23, 2026, Bank of America Corporation (BAC) has the higher forward dividend yield at 2.51%, versus 2.48% for Royal Bank of Canada (RY).
- As of Oct 23, 2026, SmarterDividends grades BAC's dividend safety A (87/100) and RY's B (75/100).
- By SmarterDividends' count as of Oct 23, 2026, BAC has raised its dividend for 12 consecutive years and RY for 10.
- As of Oct 23, 2026, BAC pays out 26% of its earnings as dividends and RY pays out 41%.
- As of Oct 23, 2026, BAC's fair-value estimate is 24% above its share price and RY's fair-value estimate is 0% above its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs RY: Dividend Yield, Safety & Value Compared," updated Oct 23, 2026, https://smarterdividends.com/compare/bac-vs-ry
| Metric | BAC | RY |
|---|---|---|
| Forward yield | 2.51% | 2.48% |
| Annual dividend | $1.28 | $4.99 |
| Payout ratio | 26% | 41% |
| Years of growth | 12 yr | 10 yr |
| 5-yr dividend growth | 8.4% | 6.2% |
| 5-yr total return | 15% | 100% |
| Dividend safety score | 87 (A) | 75 (B) |
| Fair value estimate | $63.43 | $202.73 |
| Upside to fair value | +24% | +0% |
| Frequency | quarterly | quarterly |
| Market cap | $357.2B | $279.7B |
| P/E ratio | 12.2 | 17.6 |
Higher yield
BAC
2.51%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+24% upside
BAC vs RY — FAQ
Is BAC or RY a better dividend stock?
On the data, BAC wins more head-to-head categories (6 vs 2). BAC offers the higher yield (2.51%), 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 RY?
BAC has the higher forward dividend yield at 2.51%, versus 2.48% for RY.
Is BAC or RY safer?
BAC has the higher dividend-safety score (87/100 vs 75/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or RY better value right now?
As of Oct 23, 2026, BAC looks like the better value: its fair-value estimate is 24% above its share price (undervalued). For RY, its fair-value estimate is 0% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.