IBM vs MSFT: Which Is the Better Dividend Stock?
As of August 2026, IBM and MSFT are closely matched. IBM offers the higher yield at 2.87%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (+31%).
| Metric | IBM | MSFT |
|---|---|---|
| Forward yield | 2.87% | 0.75% |
| Annual dividend | $6.76 | $3.64 |
| Payout ratio | 60% | 20% |
| Years of growth | 30 yr | 20 yr |
| 5-yr dividend growth | 1.5% | 10.2% |
| 5-yr total return | 77% | 71% |
| Dividend safety score | 91 (A) | 97 (A) |
| Fair value estimate | $214.28 | $632.78 |
| Upside to fair value | -9% | +31% |
| Frequency | quarterly | quarterly |
| Market cap | $217.7B | $3.6T |
| P/E ratio | 20.9 | 27.0 |
Higher yield
IBM
2.87%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
MSFT
+31% upside
IBM vs MSFT — FAQ
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.