MSFT vs TXN: Which Is the Better Dividend Stock?
As of Oct 29, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TXN offers the higher yield at 1.97%, 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 TXN
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, Texas Instruments Incorporated (TXN) has the higher forward dividend yield at 1.97%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 29, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and TXN's A (85/100).
- By SmarterDividends' count as of Oct 29, 2026, MSFT has raised its dividend for 20 consecutive years and TXN for 22.
- As of Oct 29, 2026, MSFT pays out 20% of its earnings as dividends and TXN pays out 74%.
- As of Oct 29, 2026, MSFT's fair-value estimate is 42% below its share price and TXN's fair-value estimate is 51% below its share price, so MSFT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs TXN: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/msft-vs-txn
| Metric | MSFT | TXN |
|---|---|---|
| Forward yield | 0.74% | 1.97% |
| Annual dividend | $3.92 | $6.08 |
| Payout ratio | 20% | 74% |
| Years of growth | 20 yr | 22 yr |
| 5-yr dividend growth | 10.2% | 8.1% |
| 5-yr total return | 59% | 48% |
| Dividend safety score | 97 (A) | 85 (A) |
| Fair value estimate | $308.36 | $151.39 |
| Upside to fair value | -42% | -51% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9T | $283.3B |
| P/E ratio | 29.6 | 40.2 |
Higher yield
TXN
1.97%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
MSFT
-42% upside
MSFT vs TXN — FAQ
Is MSFT or TXN a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). TXN offers the higher yield (1.97%), 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 TXN?
TXN has the higher forward dividend yield at 1.97%, versus 0.74% for MSFT.
Is MSFT or TXN safer?
MSFT has the higher dividend-safety score (97/100 vs 85/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or TXN better value right now?
As of Oct 29, 2026, MSFT looks like the better value: its fair-value estimate is 42% below its share price (overvalued). For TXN, its fair-value estimate is 51% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.