BAC vs JPM: Dividend Yield, Growth & Safety Comparison
Bank Of America Corp /De/ (BAC) and Jpmorgan Chase & Co (JPM) are both in the Financials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — BAC at 1.95% and JPM at 1.82%. For dividend growth, JPM leads with a 5-year CAGR of 18.6% versus BAC's 8.5%. Both stocks carry a "Safe" dividend safety rating. BAC is a Dividend Contender with 12 years of consecutive increases.
Key Metrics Comparison
| Metric | BAC | JPM |
|---|
| Dividend Yield | 1.95% | 1.82% |
| Annual Dividend | $1.08 | $5.80 |
| 5-Year CAGR | 8.5% | 18.6% |
| Payout Ratio | 28% | 29% |
| Consecutive Years | 12 | 0 |
| Price | $52.38 | $301.96 |
Yield Comparison
Bank Of America Corp /De/ (BAC) currently yields 1.95%, which is modest for the broader market. That's 0.13% more than Jpmorgan Chase & Co (JPM), which yields 1.82%. In dollar terms, BAC pays $1.08/share annually versus JPM's $5.80/share.
Dividend Growth
Over the past five years, JPM has grown its dividend at a 18.6% CAGR compared to BAC's 8.5%. BAC: Dividend growth has been steady, with a 3-year CAGR of 8.3% and a 5-year CAGR of 8.5% (10-year: 17.6%). JPM: Dividend growth is accelerating — the 3-year CAGR of 34.9% exceeds the 5-year rate of 18.6% and the 10-year rate of 16.5%.
Dividend Safety
BAC's dividend safety is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. JPM's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. Both have similar payout ratios — BAC at 28% and JPM at 29%.
Income Comparison
A $10,000 investment in BAC generates approximately $195/year in dividend income, compared to $182/year from JPM — a difference of $13/year. At $100,000, that gap widens to $130/year.
Verdict
- Best for income: BAC
- Best for growth: JPM
Frequently Asked Questions
Which has a higher dividend yield, BAC or JPM?
Bank Of America Corp /De/ (BAC) has a higher dividend yield of 1.95% compared to Jpmorgan Chase & Co (JPM) at 1.82%.
Is BAC or JPM a better dividend growth stock?
Jpmorgan Chase & Co has the stronger dividend growth with a 5-year CAGR of 18.6%, compared to Bank Of America Corp /De/'s 8.5%.
Which is safer for dividend income, BAC or JPM?
Bank Of America Corp /De/'s dividend safety is rated "Safe" while Jpmorgan Chase & Co is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x.
How much income does $10,000 in BAC vs JPM generate?
A $10,000 investment in BAC generates approximately $195/year in dividends, while the same amount in JPM generates about $182/year.
Is BAC or JPM a Dividend Aristocrat?
Bank Of America Corp /De/ is a Dividend Contender with 12 consecutive years of increases. Jpmorgan Chase & Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, BAC or JPM?
Bank Of America Corp /De/ has a lower payout ratio of 28% compared to Jpmorgan Chase & Co's 29%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BAC vs JPM: which is better for retirement income?
It depends on your priorities. BAC for current income, JPM for dividend growth. Many retirement investors hold both for diversification.
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