Is WAB or MSFT a better dividend investment in 2026?

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

What is the dividend yield difference between WAB and MSFT?

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

Home › Compare › WAB vs MSFT

WAB vs MSFT: Dividend Comparison 2026

WAB yields 4.00% · MSFT yields 0.72%● 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

WAB

● 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 WAB calculator →

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 →

Portfolio growth — WAB vs MSFT

📍 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	WAB	MSFT
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, WAB + MSFT cover 0 of 12 months — good coverage

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

WAB pays

MSFT pays

Both pay

Neither

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Tax Bracket Optimizer

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

WAB

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

$340.00/yr

After 10yr DRIP, annual income (after tax)

$764.31/yr

MSFT

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

$61.42/yr

After 10yr DRIP, annual income (after tax)

$168.88/yr

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

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Lazy Portfolio Split Optimizer

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

WAB: 50%MSFT: 50%

100% MSFT50/50100% WAB

Portfolio after 10yr

$52.5K

Annual income

$548.94/yr

Blended yield

1.05%

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Analyst Conviction Gap

Where Wall Street is most bullish on MSFT right now

WAB

Analyst Ratings

Buy

Hold

Sell

Consensus: Buy

Price Target

$277.80

+455.6% upside vs current

Range: $221.00 — $315.00

Altman Z

3.3

Piotroski

5/9

MSFT

Analyst Ratings

Buy

Hold

Consensus: Buy

Price Target

$583.67

+40.6% upside vs current

Range: $392.00 — $675.00

Altman Z

7.7

Piotroski

7/9

Analyst ratings via FMP. Altman Z-Score: >3.0 safe, 1.81–3.0 grey zone, <1.81 distress. Piotroski: 7–9 strong, 0–3 weak.

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Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

WAB buys

MSFT buys

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

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

MetricWABMSFT

Forward yield	4.00% ✓	0.72%
Annual dividend / share	$2.00	$3.00 ✓
Payout ratio	50%	24% ✓
1-year div growth	5%	10.5% ✓
5-year div CAGR	5%	10.2% ✓
Portfolio after 10y	$28.0K	$76.9K ✓
Annual income after 10y	$899.19 ✓	$198.68
Total dividends collected	$6.4K ✓	$1.3K
Payment frequency	quarterly	quarterly
Sector	Stock	Technology
Analyst consensus	Buy	Buy
Analyst price target	$277.80	$583.67 ✓

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

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

WAB vs MSFT: Complete Analysis 2026

WAB — Stock

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

Full WAB Calculator →

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 →

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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.