ADP vs MSFT: Which Is the Better Dividend Stock?
As of Oct 27, 2026, ADP (Automatic Data Processing, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. ADP offers the higher yield at 2.26%, MSFT has the higher dividend-safety score, and ADP looks like the better value (its fair-value estimate is 12% below its share price).
Key facts: ADP vs MSFT
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Automatic Data Processing, Inc. (ADP) has the higher forward dividend yield at 2.26%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 27, 2026, SmarterDividends grades ADP's dividend safety A (94/100) and MSFT's A (97/100).
- By SmarterDividends' count as of Oct 27, 2026, ADP has raised its dividend for 42 consecutive years and MSFT for 20.
- As of Oct 27, 2026, ADP pays out 61% of its earnings as dividends and MSFT pays out 20%.
- As of Oct 27, 2026, ADP's fair-value estimate is 12% below its share price and MSFT's fair-value estimate is 42% below its share price, so ADP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ADP vs MSFT: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/adp-vs-msft
| Metric | ADP | MSFT |
|---|---|---|
| Forward yield | 2.26% | 0.74% |
| Annual dividend | $6.80 | $3.92 |
| Payout ratio | 61% | 20% |
| Years of growth | 42 yr | 20 yr |
| 5-yr dividend growth | 11.5% | 10.2% |
| 5-yr total return | 32% | 59% |
| Dividend safety score | 94 (A) | 97 (A) |
| Fair value estimate | $263.79 | $308.36 |
| Upside to fair value | -12% | -42% |
| Frequency | quarterly | quarterly |
| Market cap | $119.3B | $4.0T |
| P/E ratio | 27.5 | 29.2 |
Higher yield
ADP
2.26%
Safer dividend
MSFT
Grade A
Faster growth
ADP
11.5%
Better value
ADP
-12% upside
ADP vs MSFT — FAQ
Is ADP or MSFT a better dividend stock?
On the data, ADP wins more head-to-head categories (5 vs 3). ADP offers the higher yield (2.26%), while MSFT has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ADP or MSFT?
ADP has the higher forward dividend yield at 2.26%, versus 0.74% for MSFT.
Is ADP or MSFT safer?
MSFT has the higher dividend-safety score (97/100 vs 94/100), reflecting stronger payout coverage and dividend-growth history.
Is ADP or MSFT better value right now?
As of Oct 27, 2026, ADP looks like the better value: its fair-value estimate is 12% below its share price (fairly valued). For MSFT, its fair-value estimate is 42% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.