Apple (AAPL) vs Microsoft (MSFT): 10-Year DCA Comparison, Dividends Included

Q: Microsoft pays a higher dividend, so why was its return lower than Apple's?

Dividend yield and price appreciation are two separate things. MSFT's dividend yield (roughly 0.95% annually) is higher than AAPL's (roughly 0.37% annually), but this calculation assumes dividends are collected in cash rather than reinvested, and only compares price appreciation. Reinvesting dividends would narrow the final gap between the two stocks slightly, but the difference in price appreciation is large enough that it wouldn't change the ranking.

Q: How much would the results change if dividends were reinvested?

The figures in this article are a simplified version that assumes dividends are collected separately rather than reinvested. Since both stocks' dividend yields are under 1% annually, the cumulative impact over 10 years on the final amount is relatively modest for either stock, but reinvesting dividends would make the actual final amounts somewhat larger than the figures shown here.

TL;DR

Investing $362.32 a month for 120 months, from August 2016 through July 2026, into each stock separately, a $43,478.26 principal in Apple grew to approximately $167,148.12 (a return of roughly +284.4%), while the same principal in Microsoft grew to approximately $107,720.14 (a return of roughly +147.8%).

Apple came out ahead on pure price appreciation, but Microsoft has the higher dividend yield (roughly 0.95% annually vs. Apple's roughly 0.37%).

This calculation excludes dividend reinvestment and is a simplified version — past returns cannot predict future results.

Both are flagship US big-tech names that have steadily raised their dividends over time, but they're quite different businesses. Apple is a hardware-driven consumer brand built around the iPhone, while Microsoft is centered on cloud computing (Azure) and enterprise software. We compared the two side by side over the past 10 years using actual monthly closing prices.

Comparing the Results

Item	Apple (AAPL)	Microsoft (MSFT)
Calculation period	August 2016 – July 2026 (120 months)
Monthly contribution	$362.32
Total principal	$43,478.26	$43,478.26
Pre-tax final value	approx. $167,148.12	approx. $107,720.14
Pre-tax gain	approx. +$123,669.86	approx. +$64,241.88
Pre-tax cumulative return	approx. +284.4%	approx. +147.8%
Closing price, July 2026	$294.38	$384.28
Current quarterly dividend	$0.27 (approx. $1.08/yr annualized)	$0.91 (approx. $3.64/yr annualized)
Dividend yield at current price	approx. 0.37%	approx. 0.95%

Calculation assumptions. We assumed a purchase of $362.32 in each stock on the same date every month, valued at the final month's (July 2026) closing price. This is a simple price-appreciation-only comparison that assumes dividends are collected in cash rather than reinvested, and does not account for trading fees, currency conversion fees, or capital gains tax.

Why Did MSFT's Higher Dividend Not Translate Into a Higher Return?

Dividend yield and price appreciation are entirely different axes. Over the past 10 years, Microsoft's stock climbed steadily on the back of Azure's rapid cloud growth, the shift to Office 365 subscriptions, and more recently AI Copilot and its OpenAI investment. Even so, it ended up behind Apple on a total-multiple basis — Apple received a steeper valuation re-rating driven by the iPhone super cycle, aggressive share buybacks, and the growing profit share of its services segment (App Store, iCloud, and so on).

That doesn't mean "Apple is always better," though. The ranking can flip depending on the starting point you pick for the calculation, and each company has its own business structure, risks, and future growth drivers.

What If Dividends Had Been Reinvested?

The figures in this article assume dividends are received in cash rather than reinvested. Since both stocks' dividend yields are under 1% annually, adding in the reinvestment effect over 10 years doesn't flip the overall ranking. Still, automatically reinvesting dividends (DRIP) compounds a bit further, so the actual final amounts would be somewhat larger than the numbers shown here.

Run the Comparison With Your Own Assumptions

If you'd like to compare other big-tech combinations beyond just these two stocks, try the tool below.

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Frequently Asked Questions

Between Apple and Microsoft, which had the higher 10-year DCA return?

Assuming a $362.32 monthly investment from August 2016 through July 2026 (120 months), Apple turned a $43,478.26 principal into approximately $167,148.12 before taxes (roughly +284.4%), while Microsoft turned the same principal into approximately $107,720.14 before taxes (roughly +147.8%). On price appreciation alone, Apple came out ahead.

Microsoft pays a higher dividend, so why was its return lower than Apple's?

Dividend yield and price appreciation are separate things. MSFT's dividend yield (roughly 0.95% annually) is higher than AAPL's (roughly 0.37% annually), but this calculation assumes dividends are collected in cash rather than reinvested, comparing price appreciation only. The gap in price appreciation is large enough that it doesn't change the ranking.

How much would the results change if dividends were reinvested?

This article's figures assume dividends are collected separately rather than reinvested. Because the yields are low, the impact on the final amount isn't dramatic, but reinvesting would make the actual final amounts somewhat larger than shown here.

Is splitting an investment between the two stocks also a reasonable option?

Yes. Instead of concentrating in a single stock, diversifying across several big tech names or an index ETF like QQQ can reduce single-stock risk. EZLONG's portfolio compound simulator lets you compare diversified scenarios.

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This article is not a solicitation to buy any specific stock. It is an educational, reference-only simulation using actual historical prices. Investment decisions and their outcomes are the sole responsibility of the investor. Data source: Yahoo Finance monthly closing prices and dividend history (adjusted). © 2026 EZLONG.