MSFT dividend yield: 0.72%. KO dividend yield: 3.11%. 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. Coca-Cola is a Dividend King with 62+ consecutive years of dividend increases. Operating in 200+ countries with brands including Coke, Sprite, Fanta, and Dasani. Warren Buffett's Berkshire Hathaway holds ~$24B in KO stock — and his yield on cost exceeds 50% from his 1980s purchases, illustrating the power of long-term dividend compounding.
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.
Coca-Cola is a Dividend King with 62+ consecutive years of dividend increases. Operating in 200+ countries with brands including Coke, Sprite, Fanta, and Dasani. Warren Buffett's Berkshire Hathaway holds ~$24B in KO stock — and his yield on cost exceeds 50% from his 1980s purchases, illustrating the power of long-term dividend compounding.
MSFT currently offers a 0.72% yield (3.00/share/year) while KO offers 3.11% (1.96/share/year). KO 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 MSFT vs KO earn per year?
With $10,000 invested today: MSFT pays approximately $72/year. KO pays approximately $311/year. With DRIP reinvestment over 10 years, these grow to $199/year (MSFT) and $610/year (KO).
Does MSFT or KO pay monthly dividends?
MSFT pays quarterly dividends. KO 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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