FMY vs HSBC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, HSBC (HSBC Holdings plc) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. FMY offers the higher yield at 6.85%, HSBC has the higher dividend-safety score, and HSBC looks like the better value (its fair-value estimate is 44% above its share price).
Key facts: FMY vs HSBC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, First Trust Mortgage Income Fund (FMY) has the higher forward dividend yield at 6.85%, versus 3.97% for HSBC Holdings plc (HSBC).
- As of Oct 18, 2026, SmarterDividends grades FMY's dividend safety C (52/100) and HSBC's B (72/100).
- As of Oct 18, 2026, FMY pays out 114% of its earnings as dividends and HSBC pays out 54%.
- As of Oct 18, 2026, FMY's fair-value estimate is 10% above its share price and HSBC's fair-value estimate is 44% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "FMY vs HSBC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/fmy-vs-hsbc
| Metric | FMY | HSBC |
|---|---|---|
| Forward yield | 6.85% | 3.97% |
| Annual dividend | $0.78 | $3.75 |
| Payout ratio | 114% | 54% |
| Years of growth | 0 yr | 0 yr |
| 5-yr dividend growth | 3.1% | -13.8% |
| 5-yr total return | -15% | 242% |
| Dividend safety score | 52 (C) | 72 (B) |
| Fair value estimate | $12.53 | $135.99 |
| Upside to fair value | +10% | +44% |
| Frequency | monthly | quarterly |
| Market cap | $48.0M | $323.4B |
| P/E ratio | 16.3 | 13.5 |
Higher yield
FMY
6.85%
Safer dividend
HSBC
Grade B
Faster growth
FMY
3.1%
Better value
HSBC
+44% upside
FMY vs HSBC — FAQ
Is FMY or HSBC a better dividend stock?
On the data, HSBC wins more head-to-head categories (5 vs 2). FMY offers the higher yield (6.85%), while HSBC has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, FMY or HSBC?
FMY has the higher forward dividend yield at 6.85%, versus 3.97% for HSBC.
Is FMY or HSBC safer?
HSBC has the higher dividend-safety score (72/100 vs 52/100), reflecting stronger payout coverage and dividend-growth history.
Is FMY or HSBC better value right now?
As of Oct 18, 2026, HSBC looks like the better value: its fair-value estimate is 44% above its share price (undervalued). For FMY, its fair-value estimate is 10% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.