ERIC vs MSFT: Which Is the Better Dividend Stock?
As of Oct 27, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. ERIC offers the higher yield at 2.93%, MSFT has the higher dividend-safety score, and ERIC looks like the better value (its fair-value estimate is 7% above its share price).
Key facts: ERIC vs MSFT
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Telefonaktiebolaget LM Ericsson (publ) (ERIC) has the higher forward dividend yield at 2.93%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 27, 2026, SmarterDividends grades ERIC's dividend safety B (72/100) and MSFT's A (97/100).
- By SmarterDividends' count as of Oct 27, 2026, ERIC has raised its dividend for 5 consecutive years and MSFT for 20.
- As of Oct 27, 2026, ERIC pays out 52% of its earnings as dividends and MSFT pays out 20%.
- As of Oct 27, 2026, ERIC's fair-value estimate is 7% above its share price and MSFT's fair-value estimate is 42% below its share price, so ERIC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ERIC vs MSFT: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/eric-vs-msft
| Metric | ERIC | MSFT |
|---|---|---|
| Forward yield | 2.93% | 0.74% |
| Annual dividend | $0.32 | $3.92 |
| Payout ratio | 52% | 20% |
| Years of growth | 5 yr | 20 yr |
| 5-yr dividend growth | 11.3% | 10.2% |
| 5-yr total return | 7% | 59% |
| Dividend safety score | 72 (B) | 97 (A) |
| Fair value estimate | $11.69 | $308.36 |
| Upside to fair value | +7% | -42% |
| Frequency | semiannual | quarterly |
| Market cap | $35.3B | $4.0T |
| P/E ratio | 17.6 | 29.2 |
Higher yield
ERIC
2.93%
Safer dividend
MSFT
Grade A
Faster growth
ERIC
11.3%
Better value
ERIC
+7% upside
ERIC vs MSFT — FAQ
Is ERIC or MSFT a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). ERIC offers the higher yield (2.93%), 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, ERIC or MSFT?
ERIC has the higher forward dividend yield at 2.93%, versus 0.74% for MSFT.
Is ERIC or MSFT safer?
MSFT has the higher dividend-safety score (97/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is ERIC or MSFT better value right now?
As of Oct 27, 2026, ERIC looks like the better value: its fair-value estimate is 7% above 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.