IBM dividend yield: 3.06%. PM dividend yield: 4.27%. 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. Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.
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.
Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.
IBM currently offers a 3.06% yield (6.68/share/year) while PM offers 4.27% (5.40/share/year). PM provides higher current income. However, PM has grown its dividend faster (2.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in IBM vs PM earn per year?
With $10,000 invested today: IBM pays approximately $306/year. PM pays approximately $427/year. With DRIP reinvestment over 10 years, these grow to $410/year (IBM) and $722/year (PM).
Does IBM or PM pay monthly dividends?
IBM pays quarterly dividends. PM 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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