HDV dividend yield: 3.70%. MSFT dividend yield: 0.72%. HDV screens for dividend sustainability using Morningstar's economic moat methodology — only companies with wide or narrow moats qualify. Its concentrated portfolio of ~75 holdings represents high-conviction dividend payers in healthcare, energy, and consumer staples. Higher yield than SCHD with similar quality focus. 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.
HDV screens for dividend sustainability using Morningstar's economic moat methodology — only companies with wide or narrow moats qualify. Its concentrated portfolio of ~75 holdings represents high-conviction dividend payers in healthcare, energy, and consumer staples. Higher yield than SCHD with similar quality focus.
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.
Is HDV or MSFT better for dividend income in 2026?
HDV currently offers a 3.70% yield (4.00/share/year) while MSFT offers 0.72% (3.00/share/year). HDV 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 HDV vs MSFT earn per year?
With $10,000 invested today: HDV pays approximately $370/year. MSFT pays approximately $72/year. With DRIP reinvestment over 10 years, these grow to $793/year (HDV) and $199/year (MSFT).
Does HDV or MSFT pay monthly dividends?
HDV 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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