CSCO vs MSFT: Which Is the Better Dividend Stock?
As of Nov 2, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CSCO offers the higher yield at 1.61%, MSFT has the higher dividend-safety score, and MSFT looks like the better value (its fair-value estimate is 39% below its share price).
Key facts: CSCO vs MSFT
Data as of · Source: SmarterDividends data
- As of Nov 2, 2026, Cisco Systems, Inc. (CSCO) has the higher forward dividend yield at 1.61%, versus 0.75% for Microsoft Corporation (MSFT).
- As of Nov 2, 2026, SmarterDividends grades CSCO's dividend safety A (89/100) and MSFT's A (97/100).
- By SmarterDividends' count as of Nov 2, 2026, CSCO has raised its dividend for 14 consecutive years and MSFT for 20.
- As of Nov 2, 2026, CSCO pays out 50% of its earnings as dividends and MSFT pays out 19%.
- As of Nov 2, 2026, CSCO's fair-value estimate is 41% below its share price and MSFT's fair-value estimate is 39% below its share price, so MSFT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CSCO vs MSFT: Dividend Yield, Safety & Value Compared," updated Nov 2, 2026, https://smarterdividends.com/compare/csco-vs-msft
| Metric | CSCO | MSFT |
|---|---|---|
| Forward yield | 1.61% | 0.75% |
| Annual dividend | $1.68 | $3.92 |
| Payout ratio | 50% | 19% |
| Years of growth | 14 yr | 20 yr |
| 5-yr dividend growth | 2.7% | 10.2% |
| 5-yr total return | 91% | 58% |
| Dividend safety score | 89 (A) | 97 (A) |
| Fair value estimate | $61.70 | $318.13 |
| Upside to fair value | -41% | -39% |
| Frequency | quarterly | quarterly |
| Market cap | $412.0B | $3.9T |
| P/E ratio | 31.4 | 27.2 |
Higher yield
CSCO
1.61%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
MSFT
-39% upside
CSCO vs MSFT — FAQ
Is CSCO or MSFT a better dividend stock?
On the data, MSFT wins more head-to-head categories (6 vs 2). CSCO offers the higher yield (1.61%), 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, CSCO or MSFT?
CSCO has the higher forward dividend yield at 1.61%, versus 0.75% for MSFT.
Is CSCO or MSFT safer?
MSFT has the higher dividend-safety score (97/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is CSCO or MSFT better value right now?
As of Nov 2, 2026, MSFT looks like the better value: its fair-value estimate is 39% below its share price (overvalued). For CSCO, its fair-value estimate is 41% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.