SmarterDividends

CSCO vs MSFT: Which Is the Better Dividend Stock?

As of September 2026, MSFT (Microsoft Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CSCO offers the higher yield at 1.50%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (-20%).

MetricCSCOMSFT
Forward yield1.50%0.73%
Annual dividend$1.68$3.64
Payout ratio50%20%
Years of growth14 yr20 yr
5-yr dividend growth2.7%10.2%
5-yr total return106%76%
Dividend safety score89 (A)97 (A)
Fair value estimate$81.13$395.33
Upside to fair value-28%-20%
Frequencyquarterlyquarterly
Market cap$442.1B$3.7T
P/E ratio33.727.6

Higher yield

CSCO

1.50%

Safer dividend

MSFT

Grade A

Faster growth

MSFT

10.2%

Better value

MSFT

-20% upside

CSCO vs MSFT — FAQ

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