Computed head-to-head · 6 dimensions
CSCO vs IBM
Cisco Systems, Inc. versus International Business Machines Corporation — yield, safety, growth trend, cost, scale, and tax treatment.
IBM wins 3–2 on our six-dimension comparison, but CSCO can still be the better fit depending on your priorities — see each dimension below.
IBM wins this comparison 3–2 across 6 dimensions. IBM yields 3.02% — higher than CSCO's 1.45% — and carries a 9.0/10 dividend safety score (Strong) vs 8.3/10 for CSCO (Strong). IBM wins 3–2 on our six-dimension comparison, but CSCO can still be the better fit depending on your priorities — see each dimension below.
On yield alone, IBM generates 3.02% vs 1.45% — a 1.57% difference that translates to $1,570 more per year on a $100,000 investment. On dividend safety, IBM scores 9.0/10 (Strong) vs 8.3/10 (Strong) for CSCO — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | CSCO | IBM | Winner |
|---|---|---|---|
| Yield | 1.45% | 3.02% | IBM wins |
| Dividend safety | 8.3/10 | 9.0/10 | IBM wins |
| Growth trend | -1.34% vs 5y | -0.83% vs 5y | CSCO wins |
| Volatility (beta) | 1.01 | 0.68 | IBM wins |
| Scale | $457.2B | $210.7B | CSCO wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 3 wins | IBM wins |
Dimension by dimension
IBM wins on yield (3.02% vs 1.45%)
On a $10,000 investment that's about $157 more in annual dividend income before taxes — though higher yield often comes with higher risk.
IBM's higher yield (3.02%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus CSCO's 1.45% — especially if the higher yield is driven by covered calls or a falling share price.
IBM wins on safety (9.0/10 vs 8.3/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. IBM scores better on the weighted average of those factors.
IBM (9.0/10) scores 0.7 points higher than CSCO (8.3/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
CSCO shows healthier dividend-vs-price trend
CSCO's yield is 1.34% below its 5y average, versus 0.83% for IBM. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
IBM is less volatile (beta 0.68 vs 1.01)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
CSCO is 2.2× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
Which is better for income, CSCO or IBM?
IBM wins 3–2 on our six-dimension comparison, but CSCO can still be the better fit depending on your priorities — see each dimension below.
CSCO vs IBM: which has a higher dividend yield?
CSCO yields 1.45% and IBM yields 3.02%. On a $10,000 investment that's about $157 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is CSCO or IBM a safer dividend in 2026?
CSCO scores 8.3/10 (Strong) on the Infnits dividend safety scale. IBM scores 9.0/10 (Strong). IBM is the safer pick on our scoring model.
Which has better dividend growth, CSCO or IBM?
CSCO's yield is 1.34% below its 5y average, versus 0.83% for IBM. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
CSCO vs IBM: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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