HSBC vs VMO: Which Is the Better Dividend Stock?
As of Oct 18, 2026, HSBC (HSBC Holdings plc) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. VMO offers the higher yield at 8.57%, 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 VMO
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Invesco Municipal Opportunity Trust (VMO) has the higher forward dividend yield at 8.57%, versus 3.97% for HSBC Holdings plc (HSBC).
- As of Oct 18, 2026, SmarterDividends grades HSBC's dividend safety B (72/100) and VMO's C (54/100).
- By SmarterDividends' count as of Oct 18, 2026, HSBC has raised its dividend for 0 consecutive years and VMO for 2.
- As of Oct 18, 2026, HSBC pays out 54% of its earnings as dividends and VMO pays out 268%.
- As of Oct 18, 2026, HSBC's fair-value estimate is 44% above its share price and VMO's fair-value estimate is 27% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HSBC vs VMO: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/hsbc-vs-vmo
| Metric | HSBC | VMO |
|---|---|---|
| Forward yield | 3.97% | 8.57% |
| Annual dividend | $3.75 | $0.75 |
| Payout ratio | 54% | 268% |
| Years of growth | 0 yr | 2 yr |
| 5-yr dividend growth | -13.8% | 4.8% |
| 5-yr total return | 242% | -35% |
| Dividend safety score | 72 (B) | 54 (C) |
| Fair value estimate | $135.99 | $11.09 |
| Upside to fair value | +44% | +27% |
| Frequency | quarterly | monthly |
| Market cap | $323.4B | $590.1M |
| P/E ratio | 13.5 | 31.3 |
Higher yield
VMO
8.57%
Safer dividend
HSBC
Grade B
Faster growth
VMO
4.8%
Better value
HSBC
+44% upside
HSBC vs VMO — FAQ
Is HSBC or VMO a better dividend stock?
On the data, HSBC wins more head-to-head categories (5 vs 3). VMO offers the higher yield (8.57%), 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 VMO?
VMO has the higher forward dividend yield at 8.57%, versus 3.97% for HSBC.
Is HSBC or VMO safer?
HSBC has the higher dividend-safety score (72/100 vs 54/100), reflecting stronger payout coverage and dividend-growth history.
Is HSBC or VMO 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 VMO, its fair-value estimate is 27% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.