MSFT vs PEGA: Which Is the Better Dividend Stock?
As of August 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. MSFT offers the higher yield at 0.75%, MSFT has the higher dividend-safety score, and PEGA trades at the larger discount to fair value (+85%).
| Metric | MSFT | PEGA |
|---|---|---|
| Forward yield | 0.75% | 0.36% |
| Annual dividend | $3.64 | $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 | 71% | -47% |
| Dividend safety score | 97 (A) | 87 (A) |
| Fair value estimate | $632.78 | $62.11 |
| Upside to fair value | +31% | +85% |
| Frequency | quarterly | quarterly |
| Market cap | $3.6T | $5.5B |
| P/E ratio | 27.0 | 19.1 |
Higher yield
MSFT
0.75%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
PEGA
+85% upside
MSFT vs PEGA — FAQ
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