Is IBM or DGRO a better dividend investment in 2026?

IBM currently yields 3.06% with a 1% 5-year dividend growth rate. DGRO yields 2.19% with 9.5% growth. The better choice depends on your goal: IBM offers higher current income, while DGRO is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between IBM and DGRO?

IBM has a forward dividend yield of 3.06% (6.68/share annually). DGRO yields 2.19% (1.28/share annually). The yield gap is 0.87 percentage points.

How much would $10,000 in IBM vs DGRO pay in dividends per year?

With $10,000 invested: IBM would pay approximately $306/year in dividends. DGRO would pay approximately $219/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

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IBM vs DGRO: Dividend Comparison 2026

IBM yields 3.06% · DGRO yields 2.19% · See full DRIP projection below

vsEnter any two US tickers

After 10 years · $10,000 invested · DRIP enabled

🏆 DGRO wins by $6.6K in total portfolio value

INVESTMENT

TIME HORIZON10 years

IBM

International Business Machines

3.06%

Share price

$218.40

Annual div

$6.68

5Y div CAGR

Payout ratio

64%

After 10 yrs · $10,000 · DRIP

Portfolio value

$27.6K

Annual income

$410.34

Full IBM calculator →

DGRO

iShares Core Dividend Growth ETF

2.19%

Share price

$58.40

Annual div

$1.28

5Y div CAGR

9.5%

Payout ratio

40%

After 10 yrs · $10,000 · DRIP

Portfolio value

$34.2K

Annual income

$653.00

Full DGRO calculator →

Portfolio growth — IBM vs DGRO

Annual dividend income

MetricIBMDGRO

Forward yield	3.06% ✓	2.19%
Annual dividend / share	$6.68 ✓	$1.28
Payout ratio	64%	40% ✓
1-year div growth	0.6%	8.8% ✓
5-year div CAGR	1%	9.5% ✓
Portfolio after 10y	$27.6K	$34.2K ✓
Annual income after 10y	$410.34	$653.00 ✓
Total dividends collected	$3.6K	$4.2K ✓
Payment frequency	quarterly	quarterly
Sector	Technology	ETF

Year-by-year: IBM vs DGRO ($10,000, DRIP)

Year	IBM Portfolio	IBM Income/yr	DGRO Portfolio	DGRO Income/yr	Gap
1	$11,149	$308.92	$11,320	$240.00	$171.00 → DGRO
2	$12,406	$320.90	$12,811	$268.49	$405.00 → DGRO
3	$13,781	$332.72	$14,495	$300.29	$714.00 → DGRO
4	$15,283	$344.36	$16,396	$335.78	$1.1K → DGRO
5	$16,923	$355.82	$18,542	$375.36	$1.6K → DGRO
6	$18,711	$367.09	$20,964	$419.51	$2.3K → DGRO
7	$20,661	$378.18	$23,697	$468.75	$3.0K → DGRO
8	$22,786	$389.09	$26,780	$523.64	$4.0K → DGRO
9	$25,100	$399.81	$30,257	$584.82	$5.2K → DGRO
10	$27,618	$410.34	$34,178	$653.00	$6.6K → DGRO

IBM vs DGRO: Complete Analysis 2026

IBM — Technology

IBM is a Dividend Aristocrat with 28+ consecutive years of increases. After spinning off its managed infrastructure business as Kyndryl in 2021, IBM refocused on hybrid cloud and AI. Its Red Hat acquisition underpins a software-led business model with higher margins and more predictable revenue growth.

Full IBM Calculator →

DGRO — ETF

DGRO focuses on US companies with a history of growing dividends, screening for payout ratio sustainability. With 500+ holdings and ultra-low 0.08% expense ratio, it offers broad diversification among dividend growers. One of BlackRock's most popular ETFs for long-term dividend growth investors.

Full DGRO Calculator →

Frequently Asked Questions

Is IBM or DGRO better for dividend income in 2026?

IBM currently offers a 3.06% yield (6.68/share/year) while DGRO offers 2.19% (1.28/share/year). IBM provides higher current income. However, DGRO has grown its dividend faster (9.5% 5Y CAGR), which may lead to better long-term income through compounding.

How much would $10,000 in IBM vs DGRO earn per year?

With $10,000 invested today: IBM pays approximately $306/year. DGRO pays approximately $219/year. With DRIP reinvestment over 10 years, these grow to $410/year (IBM) and $653/year (DGRO).

Does IBM or DGRO pay monthly dividends?

IBM pays quarterly dividends. DGRO pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.

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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.