CSCO vs MSFT: Which Is the Better Dividend Stock?
As of June 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CSCO offers the higher yield at 1.39%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (-8%).
| Metric | CSCO | MSFT |
|---|---|---|
| Forward yield | 1.39% | 0.93% |
| Annual dividend | $1.68 | $3.64 |
| Payout ratio | 55% | 21% |
| Years of growth | 14 yr | 20 yr |
| 5-yr dividend growth | 2.6% | 10.2% |
| 5-yr total return | 128% | 44% |
| Dividend safety score | 86 (A) | 91 (A) |
| Fair value estimate | $70.28 | $360.52 |
| Upside to fair value | -42% | -8% |
| Frequency | quarterly | quarterly |
| Market cap | $477.3B | $2.9T |
| P/E ratio | 40.4 | 23.3 |
Higher yield
CSCO
1.39%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
MSFT
-8% upside
CSCO vs MSFT — FAQ
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