MSFT vs POWI: 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. POWI offers the higher yield at 1.93%, 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: MSFT vs POWI
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Power Integrations, Inc. (POWI) has the higher forward dividend yield at 1.93%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 18, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and POWI's A (81/100).
- By SmarterDividends' count as of Oct 18, 2026, MSFT has raised its dividend for 20 consecutive years and POWI for 13.
- As of Oct 18, 2026, MSFT pays out 20% of its earnings as dividends and POWI pays out 193%.
- As of Oct 18, 2026, MSFT's fair-value estimate is 42% below its share price and POWI's fair-value estimate is 53% below its share price, so MSFT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs POWI: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/msft-vs-powi
| Metric | MSFT | POWI |
|---|---|---|
| Forward yield | 0.74% | 1.93% |
| Annual dividend | $3.92 | $0.86 |
| Payout ratio | 20% | 193% |
| Years of growth | 20 yr | 13 yr |
| 5-yr dividend growth | 10.2% | 14.9% |
| 5-yr total return | 60% | -56% |
| Dividend safety score | 97 (A) | 81 (A) |
| Fair value estimate | $308.36 | $20.84 |
| Upside to fair value | -42% | -53% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9T | $2.5B |
| P/E ratio | 29.5 | 101.1 |
Higher yield
POWI
1.93%
Safer dividend
MSFT
Grade A
Faster growth
POWI
14.9%
Better value
MSFT
-42% upside
MSFT vs POWI — FAQ
Is MSFT or POWI a better dividend stock?
On the data, MSFT wins more head-to-head categories (6 vs 2). POWI offers the higher yield (1.93%), 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, MSFT or POWI?
POWI has the higher forward dividend yield at 1.93%, versus 0.74% for MSFT.
Is MSFT or POWI safer?
MSFT has the higher dividend-safety score (97/100 vs 81/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or POWI better value right now?
As of Oct 18, 2026, MSFT looks like the better value: its fair-value estimate is 42% below its share price (overvalued). For POWI, its fair-value estimate is 53% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.