CTSH vs MSFT: Which Is the Better Dividend Stock?
As of Nov 5, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CTSH offers the higher yield at 2.01%, MSFT has the higher dividend-safety score, and CTSH looks like the better value (its fair-value estimate is 40% above its share price).
Key facts: CTSH vs MSFT
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Cognizant Technology Solutions Corporation (CTSH) has the higher forward dividend yield at 2.01%, versus 0.71% for Microsoft Corporation (MSFT).
- As of Nov 5, 2026, SmarterDividends grades CTSH's dividend safety A (84/100) and MSFT's A (97/100).
- By SmarterDividends' count as of Nov 5, 2026, CTSH has raised its dividend for 6 consecutive years and MSFT for 20.
- As of Nov 5, 2026, CTSH pays out 24% of its earnings as dividends and MSFT pays out 19%.
- As of Nov 5, 2026, CTSH's fair-value estimate is 40% above its share price and MSFT's fair-value estimate is 41% below its share price, so CTSH looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CTSH vs MSFT: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/ctsh-vs-msft
| Metric | CTSH | MSFT |
|---|---|---|
| Forward yield | 2.01% | 0.71% |
| Annual dividend | $1.32 | $3.92 |
| Payout ratio | 24% | 19% |
| Years of growth | 6 yr | 20 yr |
| 5-yr dividend growth | 7.1% | 10.2% |
| 5-yr total return | -17% | 58% |
| Dividend safety score | 84 (A) | 97 (A) |
| Fair value estimate | $93.68 | $318.13 |
| Upside to fair value | +40% | -41% |
| Frequency | quarterly | quarterly |
| Market cap | $29.9B | $4.0T |
| P/E ratio | 12.2 | 28.3 |
Higher yield
CTSH
2.01%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
CTSH
+40% upside
CTSH vs MSFT — FAQ
Is CTSH or MSFT a better dividend stock?
On the data, MSFT wins more head-to-head categories (6 vs 2). CTSH offers the higher yield (2.01%), 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, CTSH or MSFT?
CTSH has the higher forward dividend yield at 2.01%, versus 0.71% for MSFT.
Is CTSH or MSFT safer?
MSFT has the higher dividend-safety score (97/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is CTSH or MSFT better value right now?
As of Nov 5, 2026, CTSH looks like the better value: its fair-value estimate is 40% above its share price (undervalued). For MSFT, 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.