IBM vs MSFT: 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%, MSFT has the higher dividend-safety score, and IBM trades at the larger discount to fair value (-1%).
| Metric | IBM | MSFT |
|---|---|---|
| Forward yield | 2.89% | 0.73% |
| 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 | 83% | 76% |
| Dividend safety score | 91 (A) | 97 (A) |
| Fair value estimate | $240.11 | $395.33 |
| Upside to fair value | -1% | -20% |
| Frequency | quarterly | quarterly |
| Market cap | $229.2B | $3.7T |
| P/E ratio | 21.6 | 27.6 |
Higher yield
IBM
2.89%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
IBM
-1% upside
IBM vs MSFT — FAQ
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