HSBC vs PSEC: Which Is the Better Dividend Stock?
As of Oct 27, 2026, HSBC (HSBC Holdings plc) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. PSEC offers the higher yield at 28.09%, HSBC has the higher dividend-safety score, and HSBC looks like the better value (its fair-value estimate is 51% above its share price).
Key facts: HSBC vs PSEC
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Prospect Capital Corporation (PSEC) has the higher forward dividend yield at 28.09%, versus 4.11% for HSBC Holdings plc (HSBC).
- As of Oct 27, 2026, SmarterDividends grades HSBC's dividend safety B (72/100) and PSEC's D (41/100).
- As of Oct 27, 2026, HSBC's fair-value estimate is 51% above its share price and PSEC's fair-value estimate is 69% below its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HSBC vs PSEC: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/hsbc-vs-psec
| Metric | HSBC | PSEC |
|---|---|---|
| Forward yield | 4.11% | 28.09% |
| Annual dividend | $3.75 | $0.42 |
| Payout ratio | 54% | 867% |
| Years of growth | 0 yr | 0 yr |
| 5-yr dividend growth | -13.8% | -5.6% |
| 5-yr total return | 228% | -83% |
| Dividend safety score | 72 (B) | 41 (D) |
| Fair value estimate | $137.57 | $0.47 |
| Upside to fair value | +51% | -69% |
| Frequency | quarterly | monthly |
| Market cap | $311.9B | $795.4M |
| P/E ratio | 13.0 | 24.8 |
Higher yield
PSEC
28.09%
Safer dividend
HSBC
Grade B
Faster growth
PSEC
-5.6%
Better value
HSBC
+51% upside
HSBC vs PSEC — FAQ
Is HSBC or PSEC a better dividend stock?
On the data, HSBC wins more head-to-head categories (5 vs 2). PSEC offers the higher yield (28.09%), 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 PSEC?
PSEC has the higher forward dividend yield at 28.09%, versus 4.11% for HSBC.
Is HSBC or PSEC safer?
HSBC has the higher dividend-safety score (72/100 vs 41/100), reflecting stronger payout coverage and dividend-growth history.
Is HSBC or PSEC better value right now?
As of Oct 27, 2026, HSBC looks like the better value: its fair-value estimate is 51% above its share price (undervalued). For PSEC, its fair-value estimate is 69% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.