ARCC vs BAC: Which Is the Better Dividend Stock?
As of September 2026, BAC (Bank of America Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. ARCC offers the higher yield at 9.73%, BAC has the higher dividend-safety score, and BAC trades at the larger discount to fair value (+46%).
| Metric | ARCC | BAC |
|---|---|---|
| Forward yield | 9.73% | 2.04% |
| Annual dividend | $1.92 | $1.28 |
| Payout ratio | 143% | 26% |
| Years of growth | 0 yr | 12 yr |
| 5-yr dividend growth | 3.7% | 8.4% |
| 5-yr total return | -3% | 48% |
| Dividend safety score | 57 (C) | 86 (A) |
| Fair value estimate | $22.49 | $91.51 |
| Upside to fair value | +14% | +46% |
| Frequency | quarterly | quarterly |
| Market cap | $14.2B | $438.4B |
| P/E ratio | 14.7 | 14.5 |
Higher yield
ARCC
9.73%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+46% upside
ARCC vs BAC — FAQ
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