IBM vs CSCO: Which Is the Better Dividend Stock?
As of July 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 3.16%, IBM has the higher dividend-safety score, and IBM trades at the larger discount to fair value (+13%).
| Metric | IBM | CSCO |
|---|---|---|
| Forward yield | 3.16% | 1.47% |
| Annual dividend | $6.76 | $1.68 |
| Payout ratio | 60% | 55% |
| Years of growth | 30 yr | 14 yr |
| 5-yr dividend growth | 1.5% | 2.7% |
| 5-yr total return | 60% | 93% |
| Dividend safety score | 91 (A) | 87 (A) |
| Fair value estimate | $241.83 | $67.62 |
| Upside to fair value | +13% | -41% |
| Frequency | quarterly | quarterly |
| Market cap | $201.8B | $450.0B |
| P/E ratio | 19.0 | 38.1 |
Higher yield
IBM
3.16%
Safer dividend
IBM
Grade A
Faster growth
CSCO
2.7%
Better value
IBM
+13% upside
IBM vs CSCO — FAQ
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