Is MSFT or TEF a better dividend investment in 2026?

MSFT currently yields 0.72% with a 10.2% 5-year dividend growth rate. TEF yields 4.00% with 5% growth. The better choice depends on your goal: TEF offers higher current income.

What is the dividend yield difference between MSFT and TEF?

MSFT has a forward dividend yield of 0.72% ($3.00/share annually). TEF yields 4.00% ($2.00/share annually). The yield gap is 3.28 percentage points.

Home › Compare › MSFT vs TEF

MSFT vs TEF: Dividend Comparison 2026

MSFT yields 0.72% · TEF yields 4.00%● Live data

vsPost on X →

After 10 years · $10,000 invested · DRIP enabled

🏆 MSFT wins by $48.8K in total portfolio value

INVESTMENT

TIME HORIZON10 years

MSFT

Microsoft Corporation

● Live price

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 →

TEF

● Live price

4.00%

Share price

$50.00

Annual div

$2.00

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$28.0K

Annual income

$899.19

Full TEF calculator →

Portfolio growth — MSFT vs TEF

📍 MSFT pulled ahead of the other in Year 1

Annual dividend income

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Recession Test — Did They Cut Dividends?

How each stock treated shareholders during the 3 biggest crises of the last 20 years

Crisis Period	MSFT	TEF
2008–2009 GFC	— No data	— No data
2020 Q1–Q2 COVID	— No data	— No data
2022 Q4 Rate Hike	— No data	— No data

Based on dividend payment history. "Increased" = dividend grew during crisis. "Maintained" = held within 3%. "Cut" = reduced by more than 3%.

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Dividend Calendar Overlap

Combined, MSFT + TEF cover 0 of 12 months — good coverage

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

MSFT pays

TEF pays

Both pay

Neither

💰

Tax Bracket Optimizer

Which stock is actually better after tax? Adjust your rate to find out.

MSFT

Annual income on $10K today (after 15% tax)

$61.42/yr

After 10yr DRIP, annual income (after tax)

$168.88/yr

TEF

Annual income on $10K today (after 15% tax)

$340.00/yr

After 10yr DRIP, annual income (after tax)

$764.31/yr

At 15% tax rate, TEF beats the other by $595.43/year in after-tax income after 10 years on $10,000

⚖️

Lazy Portfolio Split Optimizer

What's the optimal mix of MSFT + TEF for your $10,000?

MSFT: 50%TEF: 50%

100% TEF50/50100% MSFT

Portfolio after 10yr

$52.5K

Annual income

$548.94/yr

Blended yield

1.05%

🏛️

Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

MSFT buys

TEF buys

No recent congressional trades found for MSFT or TEF in the last 90 days.

STOCK Act mandates disclosure within 45 days of transaction. Data via FMP.Full tracker →

MetricMSFTTEF

Forward yield	0.72%	4.00% ✓
Annual dividend / share	$3.00 ✓	$2.00
Payout ratio	24% ✓	50%
1-year div growth	10.5% ✓	5%
5-year div CAGR	10.2% ✓	5%
Portfolio after 10y	$76.9K ✓	$28.0K
Annual income after 10y	$198.68	$899.19 ✓
Total dividends collected	$1.3K	$6.4K ✓
Payment frequency	quarterly	quarterly
Sector	Technology	Stock

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

Year	MSFT Portfolio	MSFT Income/yr	TEF Portfolio	TEF Income/yr	Gap
1← crossover	$12,290	$79.62	$11,120	$420.00	+$1.2K → MSFT
2	$15,094	$88.32	$12,357	$458.31	+$2.7K → MSFT
3	$18,528	$97.90	$13,721	$499.76	+$4.8K → MSFT
4	$22,731	$108.46	$15,227	$544.58	+$7.5K → MSFT
5	$27,874	$120.09	$16,885	$593.02	+$11.0K → MSFT
6	$34,167	$132.92	$18,713	$645.34	+$15.5K → MSFT
7	$41,865	$147.05	$20,724	$701.81	+$21.1K → MSFT
8	$51,280	$162.62	$22,938	$762.73	+$28.3K → MSFT
9	$62,793	$179.77	$25,372	$828.41	+$37.4K → MSFT
10	$76,869	$198.68	$28,047	$899.19	+$48.8K → MSFT

MSFT vs TEF: Complete Analysis 2026

MSFT — Technology

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 →

TEF — Stock

TEF is a dividend-paying stock. Use this calculator to estimate your future dividend income, DRIP compounding returns, and passive income potential from investing in TEF shares.

Full TEF Calculator →

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⚠️ Educational purposes only. Not financial advice. Congressional trades sourced from SEC STOCK Act filings via FMP. Past performance does not guarantee future results.