MSFT vs WDC: Which Is the Better Dividend Stock?
As of Oct 22, 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. MSFT offers the higher yield at 0.74%, MSFT has the higher dividend-safety score, and WDC looks like the better value (its fair-value estimate is 86% above its share price).
Key facts: MSFT vs WDC
Data as of · Source: SmarterDividends data
- As of Oct 22, 2026, Microsoft Corporation (MSFT) has the higher forward dividend yield at 0.74%, versus 0.16% for Western Digital Corporation (WDC).
- As of Oct 22, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and WDC's C (60/100).
- By SmarterDividends' count as of Oct 22, 2026, MSFT has raised its dividend for 20 consecutive years and WDC for 0.
- As of Oct 22, 2026, MSFT pays out 20% of its earnings as dividends and WDC pays out 2%.
- As of Oct 22, 2026, MSFT's fair-value estimate is 42% below its share price and WDC's fair-value estimate is 86% above its share price, so WDC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs WDC: Dividend Yield, Safety & Value Compared," updated Oct 22, 2026, https://smarterdividends.com/compare/msft-vs-wdc
| Metric | MSFT | WDC |
|---|---|---|
| Forward yield | 0.74% | 0.16% |
| Annual dividend | $3.92 | $0.60 |
| Payout ratio | 20% | 2% |
| Years of growth | 20 yr | 0 yr |
| 5-yr dividend growth | 10.2% | -22.1% |
| 5-yr total return | 60% | 659% |
| Dividend safety score | 97 (A) | 60 (C) |
| Fair value estimate | $308.36 | $703.29 |
| Upside to fair value | -42% | +86% |
| Frequency | quarterly | quarterly |
| Market cap | $4.0T | $141.7B |
| P/E ratio | 29.7 | 14.1 |
Higher yield
MSFT
0.74%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
WDC
+86% upside
MSFT vs WDC — FAQ
Is MSFT or WDC a better dividend stock?
On the data, MSFT wins more head-to-head categories (5 vs 3). MSFT offers the higher yield (0.74%), 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 WDC?
MSFT has the higher forward dividend yield at 0.74%, versus 0.16% for WDC.
Is MSFT or WDC safer?
MSFT has the higher dividend-safety score (97/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or WDC better value right now?
As of Oct 22, 2026, WDC looks like the better value: its fair-value estimate is 86% above its share price (undervalued). For MSFT, its fair-value estimate is 42% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.