MCHP 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. MCHP offers the higher yield at 2.40%, MSFT has the higher dividend-safety score, and MSFT looks like the better value (its fair-value estimate is 42% below its share price).
Key facts: MCHP vs MSFT
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Microchip Technology Incorporated (MCHP) has the higher forward dividend yield at 2.40%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 27, 2026, SmarterDividends grades MCHP's dividend safety A (85/100) and MSFT's A (97/100).
- By SmarterDividends' count as of Oct 27, 2026, MCHP has raised its dividend for 23 consecutive years and MSFT for 20.
- As of Oct 27, 2026, MCHP pays out 268% of its earnings as dividends and MSFT pays out 20%.
- As of Oct 27, 2026, MCHP's fair-value estimate is 56% below its share price and MSFT's fair-value estimate is 42% below its share price, so MSFT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MCHP vs MSFT: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/mchp-vs-msft
| Metric | MCHP | MSFT |
|---|---|---|
| Forward yield | 2.40% | 0.74% |
| Annual dividend | $1.82 | $3.92 |
| Payout ratio | 268% | 20% |
| Years of growth | 23 yr | 20 yr |
| 5-yr dividend growth | 19.9% | 10.2% |
| 5-yr total return | -11% | 59% |
| Dividend safety score | 85 (A) | 97 (A) |
| Fair value estimate | $33.75 | $308.36 |
| Upside to fair value | -56% | -42% |
| Frequency | quarterly | quarterly |
| Market cap | $41.2B | $4.0T |
| P/E ratio | 108.4 | 29.2 |
Higher yield
MCHP
2.40%
Safer dividend
MSFT
Grade A
Faster growth
MCHP
19.9%
Better value
MSFT
-42% upside
MCHP vs MSFT — FAQ
Is MCHP or MSFT a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). MCHP offers the higher yield (2.40%), 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, MCHP or MSFT?
MCHP has the higher forward dividend yield at 2.40%, versus 0.74% for MSFT.
Is MCHP or MSFT safer?
MSFT has the higher dividend-safety score (97/100 vs 85/100), reflecting stronger payout coverage and dividend-growth history.
Is MCHP or MSFT better value right now?
As of Oct 27, 2026, MSFT looks like the better value: its fair-value estimate is 42% below its share price (overvalued). For MCHP, its fair-value estimate is 56% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.