CSCO vs IBM: Which Is the Better Dividend Stock?
As of Oct 12, 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 2.98%, IBM has the higher dividend-safety score, and IBM looks like the better value (its fair-value estimate is 12% above its share price).
Key facts: CSCO vs IBM
Data as of · Source: SmarterDividends data
- As of Oct 12, 2026, International Business Machines Corporation (IBM) has the higher forward dividend yield at 2.98%, versus 1.46% for Cisco Systems, Inc. (CSCO).
- As of Oct 12, 2026, SmarterDividends grades CSCO's dividend safety A (89/100) and IBM's A (91/100).
- By SmarterDividends' count as of Oct 12, 2026, CSCO has raised its dividend for 14 consecutive years and IBM for 30.
- As of Oct 12, 2026, CSCO pays out 50% of its earnings as dividends and IBM pays out 60%.
- As of Oct 12, 2026, CSCO's fair-value estimate is 50% below its share price and IBM's fair-value estimate is 12% above its share price, so IBM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CSCO vs IBM: Dividend Yield, Safety & Value Compared," updated Oct 12, 2026, https://smarterdividends.com/compare/csco-vs-ibm
| Metric | CSCO | IBM |
|---|---|---|
| Forward yield | 1.46% | 2.98% |
| Annual dividend | $1.68 | $6.76 |
| Payout ratio | 50% | 60% |
| Years of growth | 14 yr | 30 yr |
| 5-yr dividend growth | 2.7% | 1.5% |
| 5-yr total return | 112% | 90% |
| Dividend safety score | 89 (A) | 91 (A) |
| Fair value estimate | $59.00 | $253.41 |
| Upside to fair value | -50% | +12% |
| Frequency | quarterly | quarterly |
| Market cap | $466.8B | $214.0B |
| P/E ratio | 35.6 | 20.2 |
Higher yield
IBM
2.98%
Safer dividend
IBM
Grade A
Faster growth
CSCO
2.7%
Better value
IBM
+12% upside
CSCO vs IBM — FAQ
Is CSCO or IBM a better dividend stock?
On the data, IBM wins more head-to-head categories (5 vs 3). IBM offers the higher yield (2.98%), 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, CSCO or IBM?
IBM has the higher forward dividend yield at 2.98%, versus 1.46% for CSCO.
Is CSCO or IBM safer?
IBM has the higher dividend-safety score (91/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is CSCO or IBM better value right now?
As of Oct 12, 2026, IBM looks like the better value: its fair-value estimate is 12% above its share price (fairly valued). For CSCO, its fair-value estimate is 50% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.