MSFT dividend yield: 0.72%. SCHD dividend yield: 3.77%. 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. SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on quality companies with consistent dividend histories. With $60B+ AUM, it's the most popular dividend ETF in the US — combining income with quality. Only companies with 10+ consecutive years of dividends qualify. The ETF rebalances annually and has delivered market-beating total returns since inception in 2011.
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.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on quality companies with consistent dividend histories. With $60B+ AUM, it's the most popular dividend ETF in the US — combining income with quality. Only companies with 10+ consecutive years of dividends qualify. The ETF rebalances annually and has delivered market-beating total returns since inception in 2011.
Is MSFT or SCHD better for dividend income in 2026?
MSFT currently offers a 0.72% yield (3.00/share/year) while SCHD offers 3.77% (1.05/share/year). SCHD provides higher current income. However, SCHD has grown its dividend faster (13.05% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in MSFT vs SCHD earn per year?
With $10,000 invested today: MSFT pays approximately $72/year. SCHD pays approximately $377/year. With DRIP reinvestment over 10 years, these grow to $199/year (MSFT) and $1,926/year (SCHD).
Does MSFT or SCHD pay monthly dividends?
MSFT pays quarterly dividends. SCHD 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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