Cisco vs. IBM: Which Dividend Tech Stock Is the Better Buy?

Cisco vs. IBM: Which Dividend Tech Stock Is the Better Buy?

By Marc Guberti, The Motley Fool
Publication Date: 2026-04-15 16:05:00

Not every tech stock is a volatile, growth-fueled investment that is likely to exhibit dramatic price swings. Cisco (NASDAQ: CSCO) and IBM (NYSE: IBM) are long-standing dividend payers that offer high yields and long-term growth prospects.

Both stocks have betas under 1, which means they are less volatile than the S&P 500. That makes them particularly worth considering for retirement portfolios. Less drama and solid cash flow are great strengths, but if you can only add one of them to your holdings now, here’s what you should consider before making your choice.

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Demand for artificial intelligence (AI) has been a key catalyst for both companies. IBM’s watsonx platform helps enterprises build autonomous AI agents, and…