MSFT dividend yield: 0.72%. T dividend yield: 6.24%. 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. AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
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.
AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
MSFT currently offers a 0.72% yield (3.00/share/year) while T offers 6.24% (1.11/share/year). T 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 T earn per year?
With $10,000 invested today: MSFT pays approximately $72/year. T pays approximately $624/year. With DRIP reinvestment over 10 years, these grow to $199/year (MSFT) and $432/year (T).
Does MSFT or T pay monthly dividends?
MSFT pays quarterly dividends. T 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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