SmarterDividends

MSFT vs TXN: Which Is the Better Dividend Stock?

As of July 2026, MSFT and TXN are closely matched. TXN offers the higher yield at 2.05%, MSFT has the higher dividend-safety score, and MSFT trades at the larger discount to fair value (-7%).

MetricMSFTTXN
Forward yield0.93%2.05%
Annual dividend$3.64$5.68
Payout ratio21%85%
Years of growth20 yr22 yr
5-yr dividend growth10.2%8.1%
5-yr total return26%46%
Dividend safety score91 (A)85 (A)
Fair value estimate$354.44$161.42
Upside to fair value-7%-42%
Frequencyquarterlyquarterly
Market cap$2.9T$247.8B
P/E ratio23.442.2

Higher yield

TXN

2.05%

Safer dividend

MSFT

Grade A

Faster growth

MSFT

10.2%

Better value

MSFT

-7% upside

MSFT vs TXN — FAQ

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