MSFT vs ROP: Dividend Yield, Growth & Safety Comparison
Microsoft Corp (MSFT) and Roper Technologies Inc (ROP) are both in the Information Technology sector, making them natural rivals for dividend investors. Both stocks offer similar yields — MSFT at 0.84% and ROP at 0.97%. For dividend growth, ROP leads with a 5-year CAGR of 18.2% versus MSFT's 10.3%. Both stocks carry a "Safe" dividend safety rating. MSFT is a Dividend Contender with 20 years of consecutive increases.
Key Metrics Comparison
| Metric | MSFT | ROP |
|---|
| Dividend Yield | 0.84% | 0.97% |
| Annual Dividend | $3.48 | $3.38 |
| 5-Year CAGR | 10.3% | 18.2% |
| Payout Ratio | 21% | 23% |
| Consecutive Years | 20 | 0 |
| Price | $401.99 | $321.99 |
Yield Comparison
Roper Technologies Inc (ROP) currently yields 0.97%, which is very low for the broader market. That's 0.13% more than Microsoft Corp (MSFT), which yields 0.84%. In dollar terms, ROP pays $3.38/share annually versus MSFT's $3.48/share.
Dividend Growth
Over the past five years, ROP has grown its dividend at a 18.2% CAGR compared to MSFT's 10.3%. MSFT: Dividend growth has been steady, with a 3-year CAGR of 10.4% and a 5-year CAGR of 10.3% (10-year: 9.8%). ROP: Dividend growth is accelerating — the 3-year CAGR of 26.9% exceeds the 5-year rate of 18.2% and the 10-year rate of 15.5%.
Dividend Safety
MSFT's dividend safety is rated "Safe." The payout ratio of 21% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.6x. ROP's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x. Both have similar payout ratios — MSFT at 21% and ROP at 23%.
Income Comparison
A $10,000 investment in ROP generates approximately $97/year in dividend income, compared to $84/year from MSFT — a difference of $13/year. At $100,000, that gap widens to $130/year.
Verdict
- Best for income: ROP
- Best for growth: ROP
Frequently Asked Questions
Which has a higher dividend yield, MSFT or ROP?
Roper Technologies Inc (ROP) has a higher dividend yield of 0.97% compared to Microsoft Corp (MSFT) at 0.84%.
Is MSFT or ROP a better dividend growth stock?
Roper Technologies Inc has the stronger dividend growth with a 5-year CAGR of 18.2%, compared to Microsoft Corp's 10.3%.
Which is safer for dividend income, MSFT or ROP?
Microsoft Corp's dividend safety is rated "Safe" while Roper Technologies Inc is rated "Safe." The payout ratio of 21% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.6x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x.
How much income does $10,000 in MSFT vs ROP generate?
A $10,000 investment in MSFT generates approximately $84/year in dividends, while the same amount in ROP generates about $97/year.
Is MSFT or ROP a Dividend Aristocrat?
Microsoft Corp is a Dividend Contender with 20 consecutive years of increases. Roper Technologies Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, MSFT or ROP?
Microsoft Corp has a lower payout ratio of 21% compared to Roper Technologies Inc's 23%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MSFT vs ROP: which is better for retirement income?
It depends on your priorities. ROP for current income, ROP for dividend growth. Many retirement investors hold both for diversification.
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