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MO vs MSFT: Dividend Comparison 2026

MO yields 9.11% · 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 $49.2K in total portfolio value
10 years
MO
Altria Group Inc.
9.11%
Share price
$44.80
Annual div
$4.08
5Y div CAGR
4.3%
Payout ratio
78%
After 10 yrs · $10,000 · DRIP
Portfolio value
$27.7K
Annual income
$4,052.72
Full MO 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 — MO vs MSFT

Annual dividend income

MetricMOMSFT
Forward yield9.11%0.72%
Annual dividend / share$4.08$3.00
Payout ratio78%24%
1-year div growth4.1%10.5%
5-year div CAGR4.3%10.2%
Portfolio after 10y$27.7K$76.9K
Annual income after 10y$4,052.72$198.68
Total dividends collected$20.9K$1.3K
Payment frequencyquarterlyquarterly
SectorConsumer StaplesTechnology

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

YearMO PortfolioMO Income/yrMSFT PortfolioMSFT Income/yrGap
1$10,740$949.88$12,290$79.62$1.6KMSFT
2$11,601$1,086.84$15,094$88.32$3.5KMSFT
3$12,608$1,250.75$18,528$97.90$5.9KMSFT
4$13,792$1,448.20$22,731$108.46$8.9KMSFT
5$15,190$1,687.69$27,874$120.09$12.7KMSFT
6$16,851$1,980.28$34,167$132.92$17.3KMSFT
7$18,838$2,340.48$41,865$147.05$23.0KMSFT
8$21,230$2,787.44$51,280$162.62$30.1KMSFT
9$24,130$3,346.72$62,793$179.77$38.7KMSFT
10$27,676$4,052.72$76,869$198.68$49.2KMSFT

MO vs MSFT: Complete Analysis 2026

MOConsumer Staples

Altria is a Dividend King with 54+ consecutive years of dividend increases — one of the longest streaks in American corporate history. While cigarette volumes decline, pricing power and new product categories (oral nicotine pouches via NJOY) support cash flows. The near-9% yield is among the highest in the S&P 500.

Full MO Calculator →

MSFTTechnology

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 MO or MSFT better for dividend income in 2026?
MO currently offers a 9.11% yield (4.08/share/year) while MSFT offers 0.72% (3.00/share/year). MO 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 MO vs MSFT earn per year?
With $10,000 invested today: MO pays approximately $911/year. MSFT pays approximately $72/year. With DRIP reinvestment over 10 years, these grow to $4,053/year (MO) and $199/year (MSFT).
Does MO or MSFT pay monthly dividends?
MO 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.