MSFT vs PEGA: Which Is the Better Dividend Stock?
As of Oct 18, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. MSFT offers the higher yield at 0.74%, MSFT has the higher dividend-safety score, and PEGA looks like the better value (its fair-value estimate is 60% above its share price).
Key facts: MSFT vs PEGA
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Microsoft Corporation (MSFT) has the higher forward dividend yield at 0.74%, versus 0.35% for Pegasystems Inc. (PEGA).
- As of Oct 18, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and PEGA's A (90/100).
- By SmarterDividends' count as of Oct 18, 2026, MSFT has raised its dividend for 20 consecutive years and PEGA for 1.
- As of Oct 18, 2026, MSFT pays out 20% of its earnings as dividends and PEGA pays out 7%.
- As of Oct 18, 2026, MSFT's fair-value estimate is 42% below its share price and PEGA's fair-value estimate is 60% above its share price, so PEGA looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs PEGA: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/msft-vs-pega
| Metric | MSFT | PEGA |
|---|---|---|
| Forward yield | 0.74% | 0.35% |
| Annual dividend | $3.92 | $0.12 |
| Payout ratio | 20% | 7% |
| Years of growth | 20 yr | 1 yr |
| 5-yr dividend growth | 10.2% | 8.4% |
| 5-yr total return | 60% | -40% |
| Dividend safety score | 97 (A) | 90 (A) |
| Fair value estimate | $308.36 | $55.27 |
| Upside to fair value | -42% | +60% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9T | $5.7B |
| P/E ratio | 29.5 | 19.5 |
Higher yield
MSFT
0.74%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
PEGA
+60% upside
MSFT vs PEGA — FAQ
Is MSFT or PEGA a better dividend stock?
On the data, MSFT wins more head-to-head categories (6 vs 2). MSFT offers the higher yield (0.74%), 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, MSFT or PEGA?
MSFT has the higher forward dividend yield at 0.74%, versus 0.35% for PEGA.
Is MSFT or PEGA safer?
MSFT has the higher dividend-safety score (97/100 vs 90/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or PEGA better value right now?
As of Oct 18, 2026, PEGA looks like the better value: its fair-value estimate is 60% above its share price (undervalued). 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.