AVGO vs IBM: 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 2.97%, IBM has the higher dividend-safety score, and IBM trades at the larger discount to fair value (+13%).
| Metric | AVGO | IBM |
|---|---|---|
| Forward yield | 0.68% | 2.97% |
| Annual dividend | $2.60 | $6.76 |
| Payout ratio | 41% | 60% |
| Years of growth | 6 yr | 30 yr |
| 5-yr dividend growth | 12.6% | 1.5% |
| 5-yr total return | 668% | 60% |
| Dividend safety score | 66 (B) | 91 (A) |
| Fair value estimate | $211.75 | $241.83 |
| Upside to fair value | -45% | +13% |
| Frequency | quarterly | quarterly |
| Market cap | $1.8T | $213.3B |
| P/E ratio | 63.3 | 20.2 |
Higher yield
IBM
2.97%
Safer dividend
IBM
Grade A
Faster growth
AVGO
12.6%
Better value
IBM
+13% upside
AVGO vs IBM — FAQ
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