MSFT vs WDC: Which Is the Better Dividend Stock?
As of September 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. MSFT offers the higher yield at 0.73%, MSFT has the higher dividend-safety score, and WDC trades at the larger discount to fair value (+103%).
| Metric | MSFT | WDC |
|---|---|---|
| Forward yield | 0.73% | 0.13% |
| Annual dividend | $3.64 | $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 | 77% | 996% |
| Dividend safety score | 97 (A) | 58 (C) |
| Fair value estimate | $395.33 | $950.40 |
| Upside to fair value | -21% | +103% |
| Frequency | quarterly | quarterly |
| Market cap | $3.7T | $168.5B |
| P/E ratio | 27.9 | 17.4 |
Higher yield
MSFT
0.73%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
WDC
+103% upside
MSFT vs WDC — FAQ
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