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IBM vs KO: Dividend Comparison 2026

IBM yields 3.06% · KO yields 3.11% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 IBM wins by $5.6K in total portfolio value
10 years
IBM
International Business Machines
3.06%
Share price
$218.40
Annual div
$6.68
5Y div CAGR
1%
Payout ratio
64%
After 10 yrs · $10,000 · DRIP
Portfolio value
$27.6K
Annual income
$410.34
Full IBM calculator →
KO
The Coca-Cola Company
3.11%
Share price
$63.10
Annual div
$1.96
5Y div CAGR
4.2%
Payout ratio
71%
After 10 yrs · $10,000 · DRIP
Portfolio value
$22.0K
Annual income
$610.29
Full KO calculator →

Portfolio growth — IBM vs KO

Annual dividend income

MetricIBMKO
Forward yield3.06%3.11%
Annual dividend / share$6.68$1.96
Payout ratio64%71%
1-year div growth0.6%5.4%
5-year div CAGR1%4.2%
Portfolio after 10y$27.6K$22.0K
Annual income after 10y$410.34$610.29
Total dividends collected$3.6K$4.5K
Payment frequencyquarterlyquarterly
SectorTechnologyConsumer Staples

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

YearIBM PortfolioIBM Income/yrKO PortfolioKO Income/yrGap
1$11,149$308.92$10,834$323.66+$315.00IBM
2$12,406$320.90$11,734$347.64+$672.00IBM
3$13,781$332.72$12,706$373.31+$1.1KIBM
4$15,283$344.36$13,754$400.76+$1.5KIBM
5$16,923$355.82$14,886$430.12+$2.0KIBM
6$18,711$367.09$16,107$461.52+$2.6KIBM
7$20,661$378.18$17,423$495.09+$3.2KIBM
8$22,786$389.09$18,843$530.98+$3.9KIBM
9$25,100$399.81$20,373$569.32+$4.7KIBM
10$27,618$410.34$22,022$610.29+$5.6KIBM

IBM vs KO: Complete Analysis 2026

IBMTechnology

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.

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KOConsumer Staples

Coca-Cola is a Dividend King with 62+ consecutive years of dividend increases. Operating in 200+ countries with brands including Coke, Sprite, Fanta, and Dasani. Warren Buffett's Berkshire Hathaway holds ~$24B in KO stock — and his yield on cost exceeds 50% from his 1980s purchases, illustrating the power of long-term dividend compounding.

Full KO Calculator →

Frequently Asked Questions

Is IBM or KO better for dividend income in 2026?
IBM currently offers a 3.06% yield (6.68/share/year) while KO offers 3.11% (1.96/share/year). KO provides higher current income. However, KO has grown its dividend faster (4.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in IBM vs KO earn per year?
With $10,000 invested today: IBM pays approximately $306/year. KO pays approximately $311/year. With DRIP reinvestment over 10 years, these grow to $410/year (IBM) and $610/year (KO).
Does IBM or KO pay monthly dividends?
IBM pays quarterly dividends. KO 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.