BAC vs VGM: Which Is the Better Dividend Stock?
As of Nov 8, 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. VGM offers the higher yield at 8.24%, BAC has the higher dividend-safety score, and BAC looks like the better value (its fair-value estimate is 29% above its share price).
Key facts: BAC vs VGM
Data as of · Source: SmarterDividends data
- As of Nov 8, 2026, Invesco Trust for Investment Grade Municipals (VGM) has the higher forward dividend yield at 8.24%, versus 2.59% for Bank of America Corporation (BAC).
- As of Nov 8, 2026, SmarterDividends grades BAC's dividend safety A (85/100) and VGM's C (55/100).
- By SmarterDividends' count as of Nov 8, 2026, BAC has raised its dividend for 12 consecutive years and VGM for 2.
- As of Nov 8, 2026, BAC pays out 28% of its earnings as dividends and VGM pays out 250%.
- As of Nov 8, 2026, BAC's fair-value estimate is 29% above its share price and VGM's fair-value estimate is 24% above its share price, so BAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAC vs VGM: Dividend Yield, Safety & Value Compared," updated Nov 8, 2026, https://smarterdividends.com/compare/bac-vs-vgm
| Metric | BAC | VGM |
|---|---|---|
| Forward yield | 2.59% | 8.24% |
| Annual dividend | $1.28 | $0.78 |
| Payout ratio | 28% | 250% |
| Years of growth | 12 yr | 2 yr |
| 5-yr dividend growth | 8.4% | 4.8% |
| 5-yr total return | 11% | -31% |
| Dividend safety score | 85 (A) | 55 (C) |
| Fair value estimate | $63.64 | $11.70 |
| Upside to fair value | +29% | +24% |
| Frequency | quarterly | monthly |
| Market cap | $341.0B | $510.3M |
| P/E ratio | 11.8 | 30.4 |
Higher yield
VGM
8.24%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+29% upside
BAC vs VGM — FAQ
Is BAC or VGM a better dividend stock?
On the data, BAC wins more head-to-head categories (7 vs 1). VGM offers the higher yield (8.24%), 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 VGM?
VGM has the higher forward dividend yield at 8.24%, versus 2.59% for BAC.
Is BAC or VGM safer?
BAC has the higher dividend-safety score (85/100 vs 55/100), reflecting stronger payout coverage and dividend-growth history.
Is BAC or VGM better value right now?
As of Nov 8, 2026, BAC looks like the better value: its fair-value estimate is 29% above its share price (undervalued). For VGM, 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.