Is NEE or IBM a better dividend investment in 2026?

NEE currently yields 2.85% with a 10.4% 5-year dividend growth rate. IBM yields 3.06% with 1% growth. The better choice depends on your goal: IBM offers higher current income, while NEE is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between NEE and IBM?

NEE has a forward dividend yield of 2.85% (2.06/share annually). IBM yields 3.06% (6.68/share annually). The yield gap is 0.21 percentage points.

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

With $10,000 invested: NEE would pay approximately $285/year in dividends. IBM would pay approximately $306/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

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NEE vs IBM: Dividend Comparison 2026

NEE yields 2.85% · IBM yields 3.06% · See full DRIP projection below

vsEnter any two US tickers

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

🏆 IBM wins by $8.5K in total portfolio value

INVESTMENT

TIME HORIZON10 years

NEE

NextEra Energy Inc.

2.85%

Share price

$72.40

Annual div

$2.06

5Y div CAGR

10.4%

Payout ratio

57%

After 10 yrs · $10,000 · DRIP

Portfolio value

$19.1K

Annual income

$1,116.71

Full NEE calculator →

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 →

Portfolio growth — NEE vs IBM

Annual dividend income

MetricNEEIBM

Forward yield	2.85%	3.06% ✓
Annual dividend / share	$2.06	$6.68 ✓
Payout ratio	57% ✓	64%
1-year div growth	10% ✓	0.6%
5-year div CAGR	10.4% ✓	1%
Portfolio after 10y	$19.1K	$27.6K ✓
Annual income after 10y	$1,116.71 ✓	$410.34
Total dividends collected	$6.3K ✓	$3.6K
Payment frequency	quarterly	quarterly
Sector	Utilities	Technology

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

Year	NEE Portfolio	NEE Income/yr	IBM Portfolio	IBM Income/yr	Gap
1	$10,524	$314.12	$11,149	$308.92	$625.00 → IBM
2	$11,103	$357.46	$12,406	$320.90	$1.3K → IBM
3	$11,744	$407.76	$13,781	$332.72	$2.0K → IBM
4	$12,456	$466.36	$15,283	$344.36	$2.8K → IBM
5	$13,253	$534.89	$16,923	$355.82	$3.7K → IBM
6	$14,147	$615.36	$18,711	$367.09	$4.6K → IBM
7	$15,154	$710.25	$20,661	$378.18	$5.5K → IBM
8	$16,295	$822.67	$22,786	$389.09	$6.5K → IBM
9	$17,594	$956.52	$25,100	$399.81	$7.5K → IBM
10	$19,080	$1,116.71	$27,618	$410.34	$8.5K → IBM

NEE vs IBM: Complete Analysis 2026

NEE — Utilities

NextEra Energy is the world's largest generator of wind and solar energy. It has grown its dividend 10%+ annually for 15+ consecutive years — exceptional for a utility. Its subsidiary Florida Power & Light serves 5.8M customers. The clean energy transition is a long-term secular tailwind for NEE.

Full NEE Calculator →

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 →

Frequently Asked Questions

Is NEE or IBM better for dividend income in 2026?

NEE currently offers a 2.85% yield (2.06/share/year) while IBM offers 3.06% (6.68/share/year). IBM provides higher current income. However, NEE has grown its dividend faster (10.4% 5Y CAGR), which may lead to better long-term income through compounding.

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

With $10,000 invested today: NEE pays approximately $285/year. IBM pays approximately $306/year. With DRIP reinvestment over 10 years, these grow to $1,117/year (NEE) and $410/year (IBM).

Does NEE or IBM pay monthly dividends?

NEE pays quarterly dividends. IBM 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.