ARCC vs BAC: Which Is the Better Dividend Stock?
As of June 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 9.97%, BAC has the higher dividend-safety score, and BAC trades at the larger discount to fair value (+50%).
| Metric | ARCC | BAC |
|---|---|---|
| Forward yield | 9.97% | 2.00% |
| Annual dividend | $1.92 | $1.12 |
| Payout ratio | 118% | 27% |
| Years of growth | 0 yr | 12 yr |
| 5-yr dividend growth | 3.7% | 8.4% |
| 5-yr total return | -2% | 36% |
| Dividend safety score | 57 (C) | 86 (A) |
| Fair value estimate | $23.68 | $83.90 |
| Upside to fair value | +23% | +50% |
| Frequency | quarterly | quarterly |
| Market cap | $13.8B | $397.6B |
| P/E ratio | 11.8 | 13.9 |
Higher yield
ARCC
9.97%
Safer dividend
BAC
Grade A
Faster growth
BAC
8.4%
Better value
BAC
+50% upside
ARCC vs BAC — FAQ
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