Computed head-to-head · 6 dimensions

BNS vs PSEC

Bank of Nova Scotia versus Prospect Capital Corporation — yield, safety, growth trend, cost, scale, and tax treatment.

BNS wins 3–2 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.

Scorecard at a glance

Dimension	BNS	PSEC	Winner
Yield	3.69%	21.46%	PSEC wins
Dividend safety	7.8/10	1.9/10	BNS wins
Growth trend	-1.83% vs 5y	+8.11% vs 5y	BNS wins
Volatility (beta)	1.21	0.77	PSEC wins
Scale	$106.3B	$1.2B	BNS wins
Tax efficiency	Qualified-eligible	Qualified-eligible	Tie
Overall	3 wins	2 wins	BNS wins

Dimension by dimension

PSEC wins on yield (21.46% vs 3.69%)

On a $10,000 investment that's about $1777 more in annual dividend income before taxes — though higher yield often comes with higher risk.

PSEC's higher yield (21.46%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus BNS's 3.69% — especially if the higher yield is driven by covered calls or a falling share price.

BNS: 3.69%PSEC: 21.46%

BNS wins on safety (7.8/10 vs 1.9/10)

Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. BNS scores better on the weighted average of those factors.

BNS (7.8/10) scores 5.9 points higher than PSEC (1.9/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.

BNS: 7.8/10PSEC: 1.9/10

BNS shows healthier dividend-vs-price trend

BNS's yield is 1.83% below its 5y average, versus 8.11% for PSEC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.

BNS: -1.83% vs 5yPSEC: +8.11% vs 5y

PSEC is less volatile (beta 0.77 vs 1.21)

Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.

BNS: 1.21PSEC: 0.77

BNS is 91.8× larger by market cap

Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.

BNS: $106.3BPSEC: $1.2B

Both pay qualified-dividend-eligible distributions

Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.

BNS: Qualified-eligiblePSEC: Qualified-eligible

How we compare these

Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.

This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.

Frequently asked

Which is better for income, BNS or PSEC?

BNS wins 3–2 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.

BNS vs PSEC: which has a higher dividend yield?

BNS yields 3.69% and PSEC yields 21.46%. On a $10,000 investment that's about $1777 more in annual dividend income before taxes — though higher yield often comes with higher risk.

Is BNS or PSEC a safer dividend in 2026?

BNS scores 7.8/10 (Solid) on the Infnits dividend safety scale. PSEC scores 1.9/10 (Risky). BNS is the safer pick on our scoring model.

Which has better dividend growth, BNS or PSEC?