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