Is T or PM a better dividend investment in 2026?

T currently yields 6.24% with a -8.2% 5-year dividend growth rate. PM yields 4.27% with 2.8% 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 T and PM?

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

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

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

T vs PM Dividend Comparison 2026

Q: Does T or PM pay monthly dividends?

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

T dividend yield: 6.24%. PM dividend yield: 4.27%. 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. 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.

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T vs PM: Dividend Comparison 2026

T yields 6.24% · PM yields 4.27% · 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

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 →

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 →

Portfolio growth — T vs PM

Annual dividend income

MetricTPM

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

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

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

T vs PM: Complete Analysis 2026

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 →

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 →

Frequently Asked Questions

Is T or PM better for dividend income in 2026?

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

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

Does T or PM pay monthly dividends?

T 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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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.