SmarterDividends

CSCO vs MSFT: Which Is the Better Dividend Stock?

As of July 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CSCO offers the higher yield at 1.45%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (-7%).

MetricCSCOMSFT
Forward yield1.45%0.93%
Annual dividend$1.68$3.64
Payout ratio55%21%
Years of growth14 yr20 yr
5-yr dividend growth2.7%10.2%
5-yr total return93%26%
Dividend safety score87 (A)91 (A)
Fair value estimate$67.62$354.44
Upside to fair value-41%-7%
Frequencyquarterlyquarterly
Market cap$443.3B$2.9T
P/E ratio38.523.4

Higher yield

CSCO

1.45%

Safer dividend

MSFT

Grade A

Faster growth

MSFT

10.2%

Better value

MSFT

-7% upside

CSCO vs MSFT — FAQ

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