SetTextColor and SetBkColor could/should work with DrawText/TextOut, I have never had a need so haven't actually tried, but doing it for individual characters is likely to be a VERY tedious and error-prone exercise in head banging futility. You'd make repeated calls to the functions to draw each individual character to the client area's device context.
It still won't be a simple, easy route. Look at what's involved with changing colors in a Win console. That's dealing with characters at a simpler level than fonts in a WinAPI app. http://www.cplusplus.com/articles/Eyhv0pDG/
Thanks for the responses. I think I'll just spread out my display like a table and print out individual items in the various colors. It seems like a real pain to print a text line with different word or phrase colors.