FRAF vs HSBC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, FRAF and HSBC are closely matched. HSBC offers the higher yield at 3.97%, FRAF 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: FRAF vs HSBC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, HSBC Holdings plc (HSBC) has the higher forward dividend yield at 3.97%, versus 2.17% for Franklin Financial Services Corporation (FRAF).
- As of Oct 18, 2026, SmarterDividends grades FRAF's dividend safety A (83/100) and HSBC's B (72/100).
- As of Oct 18, 2026, FRAF pays out 24% of its earnings as dividends and HSBC pays out 54%.
- As of Oct 18, 2026, FRAF's fair-value estimate is 31% 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, "FRAF vs HSBC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/fraf-vs-hsbc
| Metric | FRAF | HSBC |
|---|---|---|
| Forward yield | 2.17% | 3.97% |
| Annual dividend | $1.36 | $3.75 |
| Payout ratio | 24% | 54% |
| Years of growth | 1 yr | 0 yr |
| 5-yr dividend growth | 1.8% | -13.8% |
| 5-yr total return | 92% | 242% |
| Dividend safety score | 83 (A) | 72 (B) |
| Fair value estimate | $82.07 | $135.99 |
| Upside to fair value | +31% | +44% |
| Frequency | quarterly | quarterly |
| Market cap | $282.3M | $323.4B |
| P/E ratio | 11.5 | 13.5 |
Higher yield
HSBC
3.97%
Safer dividend
FRAF
Grade A
Faster growth
FRAF
1.8%
Better value
HSBC
+44% upside
FRAF vs HSBC — FAQ
Is FRAF or HSBC a better dividend stock?
FRAF and HSBC are closely matched. HSBC has the higher yield; FRAF scores better on safety.
Which has a higher dividend yield, FRAF or HSBC?
HSBC has the higher forward dividend yield at 3.97%, versus 2.17% for FRAF.
Is FRAF or HSBC safer?
FRAF has the higher dividend-safety score (83/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is FRAF 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 FRAF, its fair-value estimate is 31% above its share price.
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