CSCO vs IBM: Which Is the Better Dividend Stock?
As of September 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 2.89%, IBM has the higher dividend-safety score, and IBM trades at the larger discount to fair value (-1%).
| Metric | CSCO | IBM |
|---|---|---|
| Forward yield | 1.50% | 2.89% |
| 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 | 106% | 83% |
| Dividend safety score | 89 (A) | 91 (A) |
| Fair value estimate | $81.13 | $240.11 |
| Upside to fair value | -28% | -1% |
| Frequency | quarterly | quarterly |
| Market cap | $442.1B | $229.2B |
| P/E ratio | 33.7 | 21.6 |
Higher yield
IBM
2.89%
Safer dividend
IBM
Grade A
Faster growth
CSCO
2.7%
Better value
IBM
-1% upside
CSCO vs IBM — FAQ
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