Is PM or T a better dividend investment in 2026?

PM currently yields 4.27% with a 2.8% 5-year dividend growth rate. T yields 6.24% with -8.2% growth. The better choice depends on your goal: T offers higher current income, while PM is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between PM and T?

PM has a forward dividend yield of 4.27% (5.40/share annually). T yields 6.24% (1.11/share annually). The yield gap is 1.97 percentage points.

How much would $10,000 in PM vs T pay in dividends per year?

With $10,000 invested: PM would pay approximately $427/year in dividends. T would pay approximately $624/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

PM vs T Dividend Comparison 2026

Q: Does PM or T pay monthly dividends?

PM pays quarterly dividends. T pays quarterly dividends. Monthly payers are preferred by investors who want regular cash flow to cover living expenses.

PM dividend yield: 4.27%. T dividend yield: 6.24%. 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. AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.

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PM vs T: Dividend Comparison 2026

PM yields 4.27% · T yields 6.24% · See full DRIP projection below

vsEnter any two US tickers

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

🏆 PM wins by $32.9K in total portfolio value

INVESTMENT

TIME HORIZON10 years

Philip Morris International

4.27%

Share price

$126.50

Annual div

$5.40

5Y div CAGR

2.8%

Payout ratio

84%

After 10 yrs · $10,000 · DRIP

Portfolio value

$42.0K

Annual income

$721.58

Full PM calculator →

AT&T Inc.

6.24%

Share price

$17.80

Annual div

$1.11

5Y div CAGR

-8.2%

Payout ratio

58%

After 10 yrs · $10,000 · DRIP

Portfolio value

$9.1K

Annual income

$432.01

Full T calculator →

Portfolio growth — PM vs T

Annual dividend income

MetricPMT

Forward yield	4.27%	6.24% ✓
Annual dividend / share	$5.40 ✓	$1.11
Payout ratio	84%	58% ✓
1-year div growth	3.9% ✓	0%
5-year div CAGR	2.8% ✓	-8.2%
Portfolio after 10y	$42.0K ✓	$9.1K
Annual income after 10y	$721.58 ✓	$432.01
Total dividends collected	$5.8K ✓	$5.0K
Payment frequency	quarterly	quarterly
Sector	Consumer Staples	Telecom

Year-by-year: PM vs T ($10,000, DRIP)

Year	PM Portfolio	PM Income/yr	T Portfolio	T Income/yr	Gap
1	$11,679	$438.83	$9,962	$572.46	+$1.7K → PM
2	$13,596	$468.73	$9,912	$557.56	+$3.7K → PM
3	$15,781	$499.06	$9,850	$542.34	+$5.9K → PM
4	$18,267	$529.79	$9,776	$526.88	+$8.5K → PM
5	$21,093	$560.89	$9,691	$511.23	+$11.4K → PM
6	$24,301	$592.34	$9,595	$495.45	+$14.7K → PM
7	$27,939	$624.14	$9,489	$479.58	+$18.4K → PM
8	$32,059	$656.28	$9,374	$463.69	+$22.7K → PM
9	$36,723	$688.76	$9,250	$447.82	+$27.5K → PM
10	$41,999	$721.58	$9,118	$432.01	+$32.9K → PM

PM vs T: Complete Analysis 2026

PM — Consumer Staples

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.

Full PM Calculator →

T — Telecom

AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.

Full T Calculator →

Frequently Asked Questions

Is PM or T better for dividend income in 2026?

PM currently offers a 4.27% yield (5.40/share/year) while T offers 6.24% (1.11/share/year). T 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 PM vs T earn per year?

With $10,000 invested today: PM pays approximately $427/year. T pays approximately $624/year. With DRIP reinvestment over 10 years, these grow to $722/year (PM) and $432/year (T).

Does PM or T pay monthly dividends?

PM pays quarterly dividends. T 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.