Is DGRO or MSFT a better dividend investment in 2026?

DGRO currently yields 2.19% with a 9.5% 5-year dividend growth rate. MSFT yields 0.72% with 10.2% growth. The better choice depends on your goal: DGRO offers higher current income, while MSFT is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between DGRO and MSFT?

DGRO has a forward dividend yield of 2.19% (1.28/share annually). MSFT yields 0.72% (3.00/share annually). The yield gap is 1.47 percentage points.

How much would $10,000 in DGRO vs MSFT pay in dividends per year?

With $10,000 invested: DGRO would pay approximately $219/year in dividends. MSFT would pay approximately $72/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

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DGRO vs MSFT: Dividend Comparison 2026

DGRO yields 2.19% · MSFT yields 0.72% · See full DRIP projection below

vsEnter any two US tickers

After 10 years · $10,000 invested · DRIP enabled

🏆 MSFT wins by $42.7K in total portfolio value

INVESTMENT

TIME HORIZON10 years

DGRO

iShares Core Dividend Growth ETF

2.19%

Share price

$58.40

Annual div

$1.28

5Y div CAGR

9.5%

Payout ratio

40%

After 10 yrs · $10,000 · DRIP

Portfolio value

$34.2K

Annual income

$653.00

Full DGRO calculator →

MSFT

Microsoft Corporation

0.72%

Share price

$415.20

Annual div

$3.00

5Y div CAGR

10.2%

Payout ratio

24%

After 10 yrs · $10,000 · DRIP

Portfolio value

$76.9K

Annual income

$198.68

Full MSFT calculator →

Portfolio growth — DGRO vs MSFT

Annual dividend income

MetricDGROMSFT

Forward yield	2.19% ✓	0.72%
Annual dividend / share	$1.28	$3.00 ✓
Payout ratio	40%	24% ✓
1-year div growth	8.8%	10.5% ✓
5-year div CAGR	9.5%	10.2% ✓
Portfolio after 10y	$34.2K	$76.9K ✓
Annual income after 10y	$653.00 ✓	$198.68
Total dividends collected	$4.2K ✓	$1.3K
Payment frequency	quarterly	quarterly
Sector	ETF	Technology

Year-by-year: DGRO vs MSFT ($10,000, DRIP)

Year	DGRO Portfolio	DGRO Income/yr	MSFT Portfolio	MSFT Income/yr	Gap
1	$11,320	$240.00	$12,290	$79.62	$970.00 → MSFT
2	$12,811	$268.49	$15,094	$88.32	$2.3K → MSFT
3	$14,495	$300.29	$18,528	$97.90	$4.0K → MSFT
4	$16,396	$335.78	$22,731	$108.46	$6.3K → MSFT
5	$18,542	$375.36	$27,874	$120.09	$9.3K → MSFT
6	$20,964	$419.51	$34,167	$132.92	$13.2K → MSFT
7	$23,697	$468.75	$41,865	$147.05	$18.2K → MSFT
8	$26,780	$523.64	$51,280	$162.62	$24.5K → MSFT
9	$30,257	$584.82	$62,793	$179.77	$32.5K → MSFT
10	$34,178	$653.00	$76,869	$198.68	$42.7K → MSFT

DGRO vs MSFT: Complete Analysis 2026

DGRO — ETF

DGRO focuses on US companies with a history of growing dividends, screening for payout ratio sustainability. With 500+ holdings and ultra-low 0.08% expense ratio, it offers broad diversification among dividend growers. One of BlackRock's most popular ETFs for long-term dividend growth investors.

Full DGRO Calculator →

MSFT — Technology

Microsoft has grown its dividend 10%+ annually for a decade, making it one of the best dividend growth stories in tech. Azure cloud dominance and AI integration (Copilot) drive strong cash generation. Low payout ratio of ~24% means dividends are extremely safe with significant room to grow.

Full MSFT Calculator →

Frequently Asked Questions

Is DGRO or MSFT better for dividend income in 2026?

DGRO currently offers a 2.19% yield (1.28/share/year) while MSFT offers 0.72% (3.00/share/year). DGRO provides higher current income. However, MSFT has grown its dividend faster (10.2% 5Y CAGR), which may lead to better long-term income through compounding.

How much would $10,000 in DGRO vs MSFT earn per year?

With $10,000 invested today: DGRO pays approximately $219/year. MSFT pays approximately $72/year. With DRIP reinvestment over 10 years, these grow to $653/year (DGRO) and $199/year (MSFT).

Does DGRO or MSFT pay monthly dividends?

DGRO pays quarterly dividends. MSFT pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.

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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.