BAC vs VBF: Which Is the Better Dividend Stock?
As of Oct 13, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. VBF offers the higher yield at 5.85%, BAC has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 19% above its share price).
Key facts: BAC vs VBF
Data as of · Source: SmarterDividends data
- As of Oct 13, 2026, Invesco Bond Fund (VBF) has the higher forward dividend yield at 5.85%, versus 2.35% for Bank of America Corporation (BAC).
- As of Oct 13, 2026, SmarterDividends grades BAC's dividend safety A (86/100) and VBF's C (57/100).
- By SmarterDividends' count as of Oct 13, 2026, BAC has raised its dividend for 12 consecutive years and VBF for 0.
- As of Oct 13, 2026, BAC pays out 26% of its earnings as dividends and VBF pays out 83%.
- As of Oct 13, 2026, BAC's fair-value estimate is 19% above its share price and VBF's fair-value estimate is 4% below its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs VBF: Dividend Yield, Safety & Value Compared," updated Oct 13, 2026, https://smarterdividends.com/compare/bac-vs-vbf
| Metric | BAC | VBF |
|---|---|---|
| Forward yield | 2.35% | 5.85% |
| Annual dividend | $1.28 | $0.83 |
| Payout ratio | 26% | 83% |
| Years of growth | 12 yr | 0 yr |
| 5-yr dividend growth | 8.4% | 2.2% |
| 5-yr total return | 14% | -31% |
| Dividend safety score | 86 (A) | 57 (C) |
| Fair value estimate | $65.09 | $13.63 |
| Upside to fair value | +19% | -4% |
| Frequency | quarterly | monthly |
| Market cap | $381.7B | $162.9M |
| P/E ratio | 12.6 | 14.1 |
Higher yield
VBF
5.85%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+19% upside
BAC vs VBF — FAQ
Is BAC or VBF a better dividend stock?
On the data, BAC wins more head-to-head categories (7 vs 1). VBF offers the higher yield (5.85%), 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 VBF?
VBF has the higher forward dividend yield at 5.85%, versus 2.35% for BAC.
Is BAC or VBF safer?
BAC has the higher dividend-safety score (86/100 vs 57/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or VBF better value right now?
As of Oct 13, 2026, BAC looks like the better value: its fair-value estimate is 19% above its share price (undervalued). For VBF, its fair-value estimate is 4% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.