AVGO vs IBM: Which Is the Better Dividend Stock?
As of Oct 25, 2026, IBM (International Business Machines Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. IBM offers the higher yield at 2.67%, IBM has the higher dividend-safety score, and IBM looks like the better value (its fair-value estimate is 3% above its share price).
Key facts: AVGO vs IBM
Data as of · Source: SmarterDividends data
- As of Oct 25, 2026, International Business Machines Corporation (IBM) has the higher forward dividend yield at 2.67%, versus 0.81% for Broadcom Inc. (AVGO).
- As of Oct 25, 2026, SmarterDividends grades AVGO's dividend safety B (71/100) and IBM's A (91/100).
- By SmarterDividends' count as of Oct 25, 2026, AVGO has raised its dividend for 6 consecutive years and IBM for 30.
- As of Oct 25, 2026, AVGO pays out 32% of its earnings as dividends and IBM pays out 58%.
- As of Oct 25, 2026, AVGO's fair-value estimate is 36% below its share price and IBM's fair-value estimate is 3% above its share price, so IBM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AVGO vs IBM: Dividend Yield, Safety & Value Compared," updated Oct 25, 2026, https://smarterdividends.com/compare/avgo-vs-ibm
| Metric | AVGO | IBM |
|---|---|---|
| Forward yield | 0.81% | 2.67% |
| Annual dividend | $2.60 | $6.76 |
| Payout ratio | 32% | 58% |
| Years of growth | 6 yr | 30 yr |
| 5-yr dividend growth | 12.6% | 1.5% |
| 5-yr total return | 481% | 117% |
| Dividend safety score | 71 (B) | 91 (A) |
| Fair value estimate | $204.56 | $261.74 |
| Upside to fair value | -36% | +3% |
| Frequency | quarterly | quarterly |
| Market cap | $1.5T | $239.6B |
| P/E ratio | 41.1 | 21.6 |
Higher yield
IBM
2.67%
Safer dividend
IBM
Grade A
Faster growth
AVGO
12.6%
Better value
IBM
+3% upside
AVGO vs IBM — FAQ
Is AVGO or IBM a better dividend stock?
On the data, IBM wins more head-to-head categories (5 vs 3). IBM offers the higher yield (2.67%), while IBM has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, AVGO or IBM?
IBM has the higher forward dividend yield at 2.67%, versus 0.81% for AVGO.
Is AVGO or IBM safer?
IBM has the higher dividend-safety score (91/100 vs 71/100), reflecting stronger payout coverage and dividend-growth history.
Is AVGO or IBM better value right now?
As of Oct 25, 2026, IBM looks like the better value: its fair-value estimate is 3% above its share price (fairly valued). For AVGO, its fair-value estimate is 36% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.