HSBC vs IAF: 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. IAF offers the higher yield at 11.60%, 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: HSBC vs IAF
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Abrdn Australia Equity Fund Inc (IAF) has the higher forward dividend yield at 11.60%, versus 3.97% for HSBC Holdings plc (HSBC).
- As of Oct 18, 2026, SmarterDividends grades HSBC's dividend safety B (72/100) and IAF's C (62/100).
- As of Oct 18, 2026, HSBC pays out 54% of its earnings as dividends and IAF pays out 84%.
- As of Oct 18, 2026, HSBC's fair-value estimate is 44% above its share price and IAF's fair-value estimate is 26% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HSBC vs IAF: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/hsbc-vs-iaf
| Metric | HSBC | IAF |
|---|---|---|
| Forward yield | 3.97% | 11.60% |
| Annual dividend | $3.75 | $1.45 |
| Payout ratio | 54% | 84% |
| Years of growth | 0 yr | 0 yr |
| 5-yr dividend growth | -13.8% | -0.9% |
| 5-yr total return | 242% | -29% |
| Dividend safety score | 72 (B) | 62 (C) |
| Fair value estimate | $135.99 | $15.75 |
| Upside to fair value | +44% | +26% |
| Frequency | quarterly | quarterly |
| Market cap | $323.4B | $119.8M |
| P/E ratio | 13.5 | 7.2 |
Higher yield
IAF
11.60%
Safer dividend
HSBC
Grade B
Faster growth
IAF
-0.9%
Better value
HSBC
+44% upside
HSBC vs IAF — FAQ
Is HSBC or IAF a better dividend stock?
On the data, HSBC wins more head-to-head categories (5 vs 2). IAF offers the higher yield (11.60%), 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, HSBC or IAF?
IAF has the higher forward dividend yield at 11.60%, versus 3.97% for HSBC.
Is HSBC or IAF safer?
HSBC has the higher dividend-safety score (72/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is HSBC or IAF 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 IAF, its fair-value estimate is 26% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.