CTSH 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. CTSH offers the higher yield at 2.95%, MSFT has the higher dividend-safety score, and CTSH trades at the larger discount to fair value (+78%).
| Metric | CTSH | MSFT |
|---|---|---|
| Forward yield | 2.95% | 0.92% |
| Annual dividend | $1.32 | $3.64 |
| Payout ratio | 27% | 21% |
| Years of growth | 6 yr | 20 yr |
| 5-yr dividend growth | 7.1% | 10.2% |
| 5-yr total return | -41% | 30% |
| Dividend safety score | 81 (A) | 91 (A) |
| Fair value estimate | $79.83 | $354.91 |
| Upside to fair value | +78% | -10% |
| Frequency | quarterly | quarterly |
| Market cap | $21.1B | $3.0T |
| P/E ratio | 9.7 | 23.5 |
Higher yield
CTSH
2.95%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
CTSH
+78% upside
CTSH vs MSFT — FAQ
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