MSFT vs UMC: 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. UMC offers the higher yield at 2.50%, MSFT has the higher dividend-safety score, and UMC looks like the better value (its fair-value estimate is 17% above its share price).
Key facts: MSFT vs UMC
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, United Microelectronics Corporation (UMC) has the higher forward dividend yield at 2.50%, versus 0.71% for Microsoft Corporation (MSFT).
- As of Nov 5, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and UMC's C (61/100).
- By SmarterDividends' count as of Nov 5, 2026, MSFT has raised its dividend for 20 consecutive years and UMC for 1.
- As of Nov 5, 2026, MSFT pays out 19% of its earnings as dividends and UMC pays out 37%.
- As of Nov 5, 2026, MSFT's fair-value estimate is 41% below its share price and UMC's fair-value estimate is 17% above its share price, so UMC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs UMC: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/msft-vs-umc
| Metric | MSFT | UMC |
|---|---|---|
| Forward yield | 0.71% | 2.50% |
| Annual dividend | $3.92 | $0.40 |
| Payout ratio | 19% | 37% |
| Years of growth | 20 yr | 1 yr |
| 5-yr dividend growth | 10.2% | 28.8% |
| 5-yr total return | 58% | 43% |
| Dividend safety score | 97 (A) | 61 (C) |
| Fair value estimate | $318.13 | $16.08 |
| Upside to fair value | -41% | +17% |
| Frequency | quarterly | annual |
| Market cap | $4.0T | $34.4B |
| P/E ratio | 28.3 | 13.0 |
Higher yield
UMC
2.50%
Safer dividend
MSFT
Grade A
Faster growth
UMC
28.8%
Better value
UMC
+17% upside
MSFT vs UMC — FAQ
Is MSFT or UMC a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). UMC offers the higher yield (2.50%), 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 UMC?
UMC has the higher forward dividend yield at 2.50%, versus 0.71% for MSFT.
Is MSFT or UMC safer?
MSFT has the higher dividend-safety score (97/100 vs 61/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or UMC better value right now?
As of Nov 5, 2026, UMC looks like the better value: its fair-value estimate is 17% above its share price (undervalued). 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.