Cisco vs. IBM: Tech Giants Deliver Different Dividend Experiences

Cisco Systems and International Business Machines (IBM) are two of the most recognizable dividend payers in the technology sector. In July, Cisco sent its $0.42 quarterly payment to shareholders, while IBM cut checks for $1.69 per share on September 10.

While both companies have strong balance sheets, their dividend grades differ significantly. Cisco's payout looks small in absolute dollars but is backed by a growing business that closed the record fiscal year with revenue of $63.33 billion and net income of $13.27 billion. The company's guidance for FY2027 calls for revenue between $72.2 billion and $73.4 billion and non-GAAP EPS of $5.05 to $5.11.

IBM, on the other hand, has a 31-year streak of dividend increases but faces operational challenges. Its quarterly payment of $1.69 marks the 31st consecutive year of increases, with an annualized forward payout of $6.76. However, the company's top line stalled in Q2 2026, and management flagged a securities fraud inquiry into pipeline disclosures.