HSBC vs RY: Which Is the Better Dividend Stock?
As of Oct 23, 2026, RY (Royal Bank of Canada) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HSBC offers the higher yield at 4.08%, RY has the higher dividend-safety score, and HSBC looks like the better value (its fair-value estimate is 48% above its share price).
Key facts: HSBC vs RY
Data as of · Source: SmarterDividends data
- As of Oct 23, 2026, HSBC Holdings plc (HSBC) has the higher forward dividend yield at 4.08%, versus 2.48% for Royal Bank of Canada (RY).
- As of Oct 23, 2026, SmarterDividends grades HSBC's dividend safety B (72/100) and RY's B (75/100).
- By SmarterDividends' count as of Oct 23, 2026, HSBC has raised its dividend for 0 consecutive years and RY for 10.
- As of Oct 23, 2026, HSBC pays out 54% of its earnings as dividends and RY pays out 41%.
- As of Oct 23, 2026, HSBC's fair-value estimate is 48% above its share price and RY's fair-value estimate is 0% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HSBC vs RY: Dividend Yield, Safety & Value Compared," updated Oct 23, 2026, https://smarterdividends.com/compare/hsbc-vs-ry
| Metric | HSBC | RY |
|---|---|---|
| Forward yield | 4.08% | 2.48% |
| Annual dividend | $3.75 | $4.99 |
| Payout ratio | 54% | 41% |
| Years of growth | 0 yr | 10 yr |
| 5-yr dividend growth | -13.8% | 6.2% |
| 5-yr total return | 228% | 103% |
| Dividend safety score | 72 (B) | 75 (B) |
| Fair value estimate | $135.99 | $202.73 |
| Upside to fair value | +48% | +0% |
| Frequency | quarterly | quarterly |
| Market cap | $314.3B | $279.7B |
| P/E ratio | 13.1 | 17.6 |
Higher yield
HSBC
4.08%
Safer dividend
RY
Grade B
Faster growth
RY
6.2%
Better value
HSBC
+48% upside
HSBC vs RY — FAQ
Is HSBC or RY a better dividend stock?
On the data, RY wins more head-to-head categories (5 vs 3). HSBC offers the higher yield (4.08%), while RY 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 RY?
HSBC has the higher forward dividend yield at 4.08%, versus 2.48% for RY.
Is HSBC or RY safer?
RY has the higher dividend-safety score (75/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is HSBC or RY better value right now?
As of Oct 23, 2026, HSBC looks like the better value: its fair-value estimate is 48% above its share price (undervalued). For RY, its fair-value estimate is 0% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.