IBM vs MSFT: Which Is the Better Dividend Stock?
As of July 2026, IBM (International Business Machines Corporation) screens as the stronger dividend stock, winning 5 of 7 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 | IBM | MSFT |
|---|---|---|
| Forward yield | 2.97% | 0.93% |
| Annual dividend | $6.76 | $3.64 |
| Payout ratio | 60% | 21% |
| Years of growth | 30 yr | 20 yr |
| 5-yr dividend growth | 1.5% | 10.2% |
| 5-yr total return | 60% | 26% |
| Dividend safety score | 91 (A) | 91 (A) |
| Fair value estimate | $241.83 | $354.44 |
| Upside to fair value | +13% | -7% |
| Frequency | quarterly | quarterly |
| Market cap | $213.3B | $2.9T |
| P/E ratio | 20.2 | 23.4 |
Higher yield
IBM
2.97%
Safer dividend
IBM
Grade A
Faster growth
MSFT
10.2%
Better value
IBM
+13% upside
IBM vs MSFT — FAQ
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