MSFT vs PAYX: Which Is the Better Dividend Stock?
As of Oct 24, 2026, MSFT and PAYX are closely matched. PAYX offers the higher yield at 4.03%, MSFT has the higher dividend-safety score, and PAYX looks like the better value (its fair-value estimate is 0% below its share price).
Key facts: MSFT vs PAYX
Data as of · Source: SmarterDividends data
- As of Oct 24, 2026, Paychex, Inc. (PAYX) has the higher forward dividend yield at 4.03%, versus 0.75% for Microsoft Corporation (MSFT).
- As of Oct 24, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and PAYX's A (81/100).
- By SmarterDividends' count as of Oct 24, 2026, MSFT has raised its dividend for 20 consecutive years and PAYX for 15.
- As of Oct 24, 2026, MSFT pays out 20% of its earnings as dividends and PAYX pays out 90%.
- As of Oct 24, 2026, MSFT's fair-value estimate is 41% below its share price and PAYX's fair-value estimate is 0% below its share price, so PAYX looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs PAYX: Dividend Yield, Safety & Value Compared," updated Oct 24, 2026, https://smarterdividends.com/compare/msft-vs-payx
| Metric | MSFT | PAYX |
|---|---|---|
| Forward yield | 0.75% | 4.03% |
| Annual dividend | $3.92 | $4.76 |
| Payout ratio | 20% | 90% |
| Years of growth | 20 yr | 15 yr |
| 5-yr dividend growth | 10.2% | 11.2% |
| 5-yr total return | 59% | -1% |
| Dividend safety score | 97 (A) | 81 (A) |
| Fair value estimate | $308.36 | $117.51 |
| Upside to fair value | -41% | -0% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9T | $42.0B |
| P/E ratio | 29.2 | 23.4 |
Higher yield
PAYX
4.03%
Safer dividend
MSFT
Grade A
Faster growth
PAYX
11.2%
Better value
PAYX
-0% upside
MSFT vs PAYX — FAQ
Is MSFT or PAYX a better dividend stock?
MSFT and PAYX are closely matched. PAYX has the higher yield; MSFT scores better on safety.
Which has a higher dividend yield, MSFT or PAYX?
PAYX has the higher forward dividend yield at 4.03%, versus 0.75% for MSFT.
Is MSFT or PAYX safer?
MSFT has the higher dividend-safety score (97/100 vs 81/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or PAYX better value right now?
As of Oct 24, 2026, PAYX looks like the better value: its fair-value estimate is 0% below its share price (fairly valued). 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.