Apple and Microsoft are two of the largest technology companies, and both pay a dividend. They are, however, very different businesses: Apple sells devices and services within a tightly integrated ecosystem, while Microsoft sells software, cloud services and business subscriptions.
Apple vs Microsoft: Two Big Tech Dividend Payers
Apple and Microsoft are among the largest companies in the world and both pay dividends. Compare their businesses, dividend history and how they return cash.
At a glance
Apple Inc.
AAPL
|
Microsoft Corporation
MSFT
|
|
|---|---|---|
| Exchange | NASDAQ | NASDAQ |
| Sector | Information Technology | Information Technology |
| Industry | Consumer electronics and software | Software and cloud computing |
| Founded | 1976 | 1975 |
| Headquarters | Cupertino, California, USA | Redmond, Washington, USA |
| Regular dividend | Yes | Yes |
| Dividend lists | — | — |
| Full profile | Read the profile → | Read the profile → |
Price chart
Live data by TradingViewKey differences
Core business
Apple: the iPhone, Mac and wearables, with a fast-growing Services segment. Microsoft: cloud (Azure), productivity software, gaming and Windows.
Dividend history
Microsoft paid its first dividend in 2003 and has raised it regularly since. Apple restarted a dividend in 2012 after many years without one.
How cash is returned
Apple has returned most of its surplus cash through share buybacks. Microsoft pays a growing dividend alongside its buybacks.
Credit quality
Microsoft is one of only two US companies, with Johnson & Johnson, with a top AAA credit rating from S&P Global.
Yields
Both have low yields compared with traditional income stocks, since their share prices have risen so much.
What to check before choosing
- Are you looking for dividend income, or mainly for growth with a small dividend?
- How concentrated is your portfolio already in large technology companies?
- How do their current payout ratios and dividend growth compare?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Which pays more dividends, Apple or Microsoft?
Both pay low yields. Check the current yield and dividend growth for each, as they change with price.
Are Apple and Microsoft good dividend stocks?
They are strong businesses with growing dividends, but their yields are low, so they suit growth more than income.
Should I own both?
They overlap in your exposure to big technology. Consider how much of your portfolio you want there.
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