MSFT vs STM: Which Is the Better Dividend Stock?
As of September 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. MSFT offers the higher yield at 0.79%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (-20%).
| Metric | MSFT | STM |
|---|---|---|
| Forward yield | 0.79% | 0.72% |
| Annual dividend | $3.92 | $0.36 |
| Payout ratio | 20% | 71% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 14.1% |
| 5-yr total return | 49% | 5% |
| Dividend safety score | 97 (A) | 64 (C) |
| Fair value estimate | $395.71 | $35.70 |
| Upside to fair value | -20% | -29% |
| Frequency | quarterly | quarterly |
| Market cap | $3.7T | $44.8B |
| P/E ratio | 27.5 | — |
Higher yield
MSFT
0.79%
Safer dividend
MSFT
Grade A
Faster growth
STM
14.1%
Better value
MSFT
-20% upside
MSFT vs STM — FAQ
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