MSFT vs STX: Which Is the Better Dividend Stock?
As of Nov 5, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. MSFT offers the higher yield at 0.71%, MSFT has the higher dividend-safety score, and STX looks like the better value (its fair-value estimate is 2% above its share price).
Key facts: MSFT vs STX
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Microsoft Corporation (MSFT) has the higher forward dividend yield at 0.71%, versus 0.55% for Seagate Technology Holdings plc (STX).
- As of Nov 5, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and STX's A (93/100).
- By SmarterDividends' count as of Nov 5, 2026, MSFT has raised its dividend for 20 consecutive years and STX for 2.
- As of Nov 5, 2026, MSFT pays out 19% of its earnings as dividends and STX pays out 16%.
- As of Nov 5, 2026, MSFT's fair-value estimate is 41% below its share price and STX's fair-value estimate is 2% above its share price, so STX looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs STX: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/msft-vs-stx
| Metric | MSFT | STX |
|---|---|---|
| Forward yield | 0.71% | 0.55% |
| Annual dividend | $3.92 | $3.04 |
| Payout ratio | 19% | 16% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 2.1% |
| 5-yr total return | 58% | 528% |
| Dividend safety score | 97 (A) | 93 (A) |
| Fair value estimate | $318.13 | $498.20 |
| Upside to fair value | -41% | +2% |
| Frequency | quarterly | quarterly |
| Market cap | $4.0T | $111.8B |
| P/E ratio | 28.3 | 25.5 |
Higher yield
MSFT
0.71%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
STX
+2% upside
MSFT vs STX — FAQ
Is MSFT or STX a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). MSFT offers the higher yield (0.71%), 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 STX?
MSFT has the higher forward dividend yield at 0.71%, versus 0.55% for STX.
Is MSFT or STX safer?
MSFT has the higher dividend-safety score (97/100 vs 93/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or STX better value right now?
As of Nov 5, 2026, STX looks like the better value: its fair-value estimate is 2% above 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.