MSFT vs TEL: 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. TEL offers the higher yield at 1.50%, MSFT has the higher dividend-safety score, and TEL trades at the larger discount to fair value (+15%).
| Metric | MSFT | TEL |
|---|---|---|
| Forward yield | 0.73% | 1.50% |
| Annual dividend | $3.64 | $3.12 |
| Payout ratio | 20% | 28% |
| Years of growth | 20 yr | 15 yr |
| 5-yr dividend growth | 10.2% | 7.8% |
| 5-yr total return | 77% | 52% |
| Dividend safety score | 97 (A) | 94 (A) |
| Fair value estimate | $395.33 | $239.75 |
| Upside to fair value | -21% | +15% |
| Frequency | quarterly | quarterly |
| Market cap | $3.7T | $60.4B |
| P/E ratio | 27.9 | 20.5 |
Higher yield
TEL
1.50%
Safer dividend
MSFT
Grade A
Faster growth
MSFT
10.2%
Better value
TEL
+15% upside
MSFT vs TEL — FAQ
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