Microsoft Corp Dividend Increase

Microsoft raised its quarterly dividend by 7.69% to $0.98 per share, marking another year of steady payout growth.

Source: DepositPhotos

On September 15, Microsoft (MSFT) increased its dividend by 7.69%, from 91¢ to 98¢ per share.

The dividend is payable on December 10 to shareholders of record on November 19.

MSFT's contribution to DivGro's projected annual dividend income will increase by $33.60 to $470.40.

Dividend Update

Created by the author

I own 120 shares of MSFT at an average cost basis of $249.31 per share. Following this increase, my yield on cost is 1.57%. (The stock's forward yield is 0.79% at $493.78/share.)

Since I opened my position in August 2013, the stock has delivered a total return of 103%, including $1,436.88 in dividends. That's a spectacular annualized rate of return of 27.2%!

MSFT became DivGro's 7th Home Run stock in October 2016, when it doubled my original capital outlay.

MSFT is also DivGro's 1st Ten Bagger, a designation reserved for stocks with total returns exceeding 1,000%. That milestone dates to 2021, when the position rested entirely on my 2013 lot at $31.76 per share. My four purchases in 2026 lifted its average cost basis to $249.31.

5-Year History of Dividend Payouts by Ex-Date

2021

2022

2023

2024

2025

2026

$2.300

$2.540

$2.790

$3.080

$3.400

$3.710✝

10.05%

10.43%

9.84%

10.39%

10.39%

9.12%

5-year DGR:

10.22%

10.03%

projected, assuming no further changes

Dividend Safety Profile

Created by the author

MSFT's quality score is 9.27, which I rate Exceptional. A Simply Safe Dividends score of 99 places MSFT firmly in the Very Safe band. S&P rates MSFT's long-term debt AAA, its highest rating, held by only a handful of issuers.

STOCKS IN THIS ARTICLE

Comments