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VYM vs IBM: Dividend Comparison 2026

VYM yields 2.91% · IBM yields 3.06% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 VYM wins by $3.6K in total portfolio value
10 years
VYM
Vanguard High Dividend Yield ETF
2.91%
Share price
$118.40
Annual div
$3.44
5Y div CAGR
7.8%
Payout ratio
45%
After 10 yrs · $10,000 · DRIP
Portfolio value
$31.3K
Annual income
$785.17
Full VYM calculator →
IBM
International Business Machines
3.06%
Share price
$218.40
Annual div
$6.68
5Y div CAGR
1%
Payout ratio
64%
After 10 yrs · $10,000 · DRIP
Portfolio value
$27.6K
Annual income
$410.34
Full IBM calculator →

Portfolio growth — VYM vs IBM

Annual dividend income

MetricVYMIBM
Forward yield2.91%3.06%
Annual dividend / share$3.44$6.68
Payout ratio45%64%
1-year div growth6.2%0.6%
5-year div CAGR7.8%1%
Portfolio after 10y$31.3K$27.6K
Annual income after 10y$785.17$410.34
Total dividends collected$5.2K$3.6K
Payment frequencyquarterlyquarterly
SectorETFTechnology

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

YearVYM PortfolioVYM Income/yrIBM PortfolioIBM Income/yrGap
1$11,223$313.20$11,149$308.92+$74.00VYM
2$12,592$347.33$12,406$320.90+$186.00VYM
3$14,123$385.04$13,781$332.72+$342.00VYM
4$15,835$426.70$15,283$344.36+$552.00VYM
5$17,748$472.73$16,923$355.82+$825.00VYM
6$19,887$523.54$18,711$367.09+$1.2KVYM
7$22,276$579.64$20,661$378.18+$1.6KVYM
8$24,945$641.54$22,786$389.09+$2.2KVYM
9$27,925$709.84$25,100$399.81+$2.8KVYM
10$31,251$785.17$27,618$410.34+$3.6KVYM

VYM vs IBM: Complete Analysis 2026

VYMETF

VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.

Full VYM Calculator →

IBMTechnology

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 VYM or IBM better for dividend income in 2026?
VYM currently offers a 2.91% yield (3.44/share/year) while IBM offers 3.06% (6.68/share/year). IBM provides higher current income. However, VYM has grown its dividend faster (7.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in VYM vs IBM earn per year?
With $10,000 invested today: VYM pays approximately $291/year. IBM pays approximately $306/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $410/year (IBM).
Does VYM or IBM pay monthly dividends?
VYM 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.