Is SO or IBM a better dividend investment in 2026?

SO currently yields 3.42% with a 3.1% 5-year dividend growth rate. IBM yields 3.06% with 1% growth. The better choice depends on your goal: SO offers higher current income, while SO is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between SO and IBM?

SO has a forward dividend yield of 3.42% (2.88/share annually). IBM yields 3.06% (6.68/share annually). The yield gap is 0.36 percentage points.

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

With $10,000 invested: SO would pay approximately $342/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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SO vs IBM: Dividend Comparison 2026

Q: Does SO or IBM pay monthly dividends?

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

SO yields 3.42% · 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 $5.9K in total portfolio value

INVESTMENT

TIME HORIZON10 years

The Southern Company

3.42%

Share price

$84.20

Annual div

$2.88

5Y div CAGR

3.1%

Payout ratio

72%

After 10 yrs · $10,000 · DRIP

Portfolio value

$21.7K

Annual income

$613.85

Full SO 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 — SO vs IBM

Annual dividend income

MetricSOIBM

Forward yield	3.42% ✓	3.06%
Annual dividend / share	$2.88	$6.68 ✓
Payout ratio	72%	64% ✓
1-year div growth	3% ✓	0.6%
5-year div CAGR	3.1% ✓	1%
Portfolio after 10y	$21.7K	$27.6K ✓
Annual income after 10y	$613.85 ✓	$410.34
Total dividends collected	$4.7K ✓	$3.6K
Payment frequency	quarterly	quarterly
Sector	Utilities	Technology

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

Year	SO Portfolio	SO Income/yr	IBM Portfolio	IBM Income/yr	Gap
1	$10,833	$352.65	$11,149	$308.92	$316.00 → IBM
2	$11,728	$375.81	$12,406	$320.90	$678.00 → IBM
3	$12,692	$400.29	$13,781	$332.72	$1.1K → IBM
4	$13,727	$426.14	$15,283	$344.36	$1.6K → IBM
5	$14,839	$453.42	$16,923	$355.82	$2.1K → IBM
6	$16,034	$482.21	$18,711	$367.09	$2.7K → IBM
7	$17,316	$512.58	$20,661	$378.18	$3.3K → IBM
8	$18,692	$544.59	$22,786	$389.09	$4.1K → IBM
9	$20,167	$578.32	$25,100	$399.81	$4.9K → IBM
10	$21,749	$613.85	$27,618	$410.34	$5.9K → IBM

SO vs IBM: Complete Analysis 2026

SO — Utilities

Southern Company is a Dividend Aristocrat with 23+ consecutive years of increases. It serves 9M+ customers across Georgia, Alabama, and Mississippi through its regulated electric and gas utilities. Vogtle Unit 4 nuclear plant completion in 2024 adds decades of low-carbon baseload generation capacity.

Full SO 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 SO or IBM better for dividend income in 2026?

SO currently offers a 3.42% yield (2.88/share/year) while IBM offers 3.06% (6.68/share/year). SO provides higher current income. However, SO has grown its dividend faster (3.1% 5Y CAGR), which may lead to better long-term income through compounding.

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

With $10,000 invested today: SO pays approximately $342/year. IBM pays approximately $306/year. With DRIP reinvestment over 10 years, these grow to $614/year (SO) and $410/year (IBM).

Does SO or IBM pay monthly dividends?

SO 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.