Does Microsoft Pay Dividends and What Investors Need to Know

Microsoft does pay dividends, but it's not a guarantee. Historically, the company has a history of paying consistent dividends.

Microsoft has been paying dividends since 2003, with the first payout being $0.12 per share.

The dividend yield is a key metric for investors to consider, and Microsoft's yield is generally around 1-2% annually.

Investors should also note that Microsoft's dividend payout ratio is typically around 30-40%, indicating that the company has a stable cash flow to support dividend payments.

Microsoft has been paying dividends since 2003, making it a reliable source of income for investors. The company has issued four quarterly dividends in the last twelve months.

The annualized dividend per share (DPS) has grown by 10% since one year ago, indicating a consistent increase in dividend payments. Microsoft's revenue growth has averaged just under 15% over the past five years, which is a testament to the company's financial stability.

Here's a brief summary of Microsoft's dividend history:

Microsoft's dividend yield, which is the ratio of the annual dividend payment to the stock's price, was 0.81% as of September 14. This is lower than the S&P 500's yield of 1.46% and the Technology Select Sector SPDR ETF XLK's yield of 0.79%.

Microsoft has been paying dividends since 2003, with its first payout being $0.08 per share. The company has increased its dividend payout over the years, with the current quarterly payout being $0.83 per share.

The payout amount for Microsoft has remained consistent at $0.83 per share for each quarterly payment since 2024. This consistency suggests that the company is committed to its dividend payout strategy.

Here is a breakdown of Microsoft's payout history:

The payout frequency for Microsoft is quarterly, with payments made in March, June, September, and December. This regular payout schedule allows investors to receive a consistent income stream from their MSFT shares.

Microsoft's dividend yield has been relatively low, ranging from 0.18% to 0.81% over the past few years. Despite this, the company's dividend payout ratio is a manageable 24.7%, indicating that it has a solid financial position to support its dividend payments.

Microsoft has consistently demonstrated its ability to grow its dividend, with a remarkable 18 consecutive years of increasing its per share dividend payment.

This level of consistency is a testament to the company's financial health and commitment to its shareholders.

MSFT has grown its dividend by 10% annually over the past five years, outpacing many of its tech sector peers.

In contrast, Apple AAPL has grown its dividend by less than 7%, and Nvidia by only 1%.

Broadcom's dividend has grown by 23% during that time, but Microsoft still holds its own in the market.

Microsoft has been paying dividends since 2003, starting with payouts of $0.08 per share and increasing to a current payout of $0.68 per share each quarter.

The company's annual dividend payout is a relatively small portion of its profits, with a payout ratio of 28%, meaning less than ⅓ of its profits are distributed to shareholders as a dividend.

Microsoft's dividend yield is relatively low, currently standing at 0.74% and has been as low as 0.81% over the past 12 months.

The company's revenue growth has averaged just under 15% over the past five years, and its earnings per share (EPS diluted growth) has increased at a 39% annual rate.

Microsoft's stock price has tripled over the past five years, making it one of the true stock market leaders in recent years, among dividend stocks, but also among stocks of any type.

The company's low dividend yield is typical of the tech sector, where companies tend to pay out a relatively low portion of profits, preferring to put those earnings back into the business to continue to grow earnings.

Microsoft's annual dividend payout is only a small fraction of its massive cash pile, which totals $43.4 billion, and its business generates cash at the rate of $1 billion a month.

Microsoft's stock performance is impressive, with its stock price growing faster than its willingness to grow its dividend, a common trait among technology companies.

The company's dividend yield is sub-1%, which is largely due to its rapid stock price growth.

Microsoft's stock price was reduced by $0.68 on the opening of stock market trading on August 16, the ex-date for its last dividend payment.

This reduction is a common practice for dividend-paying stocks, where the stock price is adjusted to reflect the dividend payment.

Microsoft's dividend history shows that its yield has briefly crossed the 3% level on a few occasions, most recently in 2015.

In November 2021, Microsoft's yield sat at 0.49%, the lowest rate it has seen since the company started its dividend growth streak 18 years ago.

Microsoft has paid dividends since 2003, beginning with payouts of $0.08 per share and increasing it through the years to a current payout of $0.68 per share each quarter.

Microsoft's revenue growth has averaged just under 15% over the past five years, a remarkable increase for any business, especially for a company this large and established.

The company's earnings per share (EPS diluted growth) has increased at a 39% annual rate over the same period, a testament to Microsoft's financial health.

Microsoft's stock price has tripled (up 200%) over the past five years, making it one of the true stock market leaders in recent years.

The company's cash pile totals $43.4 billion, and its business generates cash at the rate of $1 billion a month.

Microsoft's annual dividend payout will cost the company about $856 million a year, a small price to pay for a company of its size and financial strength.

Microsoft's two largest shareholders, Bill Gates and Steven A. Ballmer, will receive yearly dividends of $97.9 million and $37.6 million, respectively, based on their current holdings.

Microsoft's dividend policy is quite impressive, especially considering the company's growth trajectory. MSFT has paid dividends since 2003, starting with payouts of $0.08 per share and increasing it over the years to a current payout of $0.68 per share each quarter.

The company's revenue growth has averaged just under 15% over the past five years, with earnings per share (EPS) increasing at a 39% annual rate. This remarkable growth has led to a significant increase in the stock price, which has tripled (up 200%) over the same period.

MSFT's payout ratio is a key factor in evaluating its dividend policy. The company's payout ratio stands at 28%, which means less than ⅓ of its profits are distributed to shareholders as a dividend. This is a healthy ratio, indicating that the company has room for error and can continue to grow its profits.

Here's a comparison of MSFT's payout ratio with its peers in the U.S. tech sector:

As you can see, MSFT's payout ratio is significantly lower than its peers, indicating a more conservative approach to dividend payments. This is likely due to the company's focus on growth and innovation, rather than solely relying on dividend payments to attract investors.