VIG dividend yield: 1.29%. IBM dividend yield: 3.06%. VIG tracks companies that have grown their dividends for 10+ consecutive years — the definition of dividend quality. With 315+ holdings and 0.06% expense ratio, it's a core holding for dividend growth investors. Lower current yield but superior long-term dividend growth versus high-yield alternatives. 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.
VIG tracks companies that have grown their dividends for 10+ consecutive years — the definition of dividend quality. With 315+ holdings and 0.06% expense ratio, it's a core holding for dividend growth investors. Lower current yield but superior long-term dividend growth versus high-yield alternatives.
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.
VIG currently offers a 1.29% yield (2.40/share/year) while IBM offers 3.06% (6.68/share/year). IBM provides higher current income. However, VIG has grown its dividend faster (9.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in VIG vs IBM earn per year?
With $10,000 invested today: VIG pays approximately $129/year. IBM pays approximately $306/year. With DRIP reinvestment over 10 years, these grow to $346/year (VIG) and $410/year (IBM).
Does VIG or IBM pay monthly dividends?
VIG 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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