MSFT Dividend Yield 2026: Microsoft Corporation

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Data last updated: Jul 06, 2026

Dividend Yield: 0.91%

Annual Dividend: $3.56 per share

Payout Ratio: 20.6%

Ex-Dividend Date: 2026-08-20

Dividend Frequency: quarterly

Sector: Technology

Years of Dividend History: 24

About Microsoft Corporation Dividend

Microsoft Corporation dividend investors get a software and cloud giant with revenue spanning Azure, Office 365, LinkedIn, and Xbox. The current yield is 0.91%, with a trailing annual dividend rate of $3.56 per share paid quarterly. The next ex-dividend date is August 20, 2026. A beta of 1.103 puts MSFT stock slightly above average market volatility, making it a fit for growth-and-income investors who can accept modest price swings in exchange for fast dividend growth.

Dividend Safety

Microsoft Corporation pays out 20.6% of earnings as dividends, a payout ratio classified as conservative (below 40%). That low payout is backed by a business built on recurring subscription revenue across products like Office 365, Azure, and Dynamics 365, which generates the kind of repeating cash flows that support dividend obligations. Microsoft Corporation dividend safety faces its most realistic pressure not from the payout ratio itself, but from the capital demands of competing in cloud infrastructure and AI, where reinvestment requirements are high.

Microsoft Corporation (MSFT) Dividend Growth Rate, CAGR, and History

Microsoft Corporation dividend history shows a CAGR of 12.2% per year from 2011 to 2025. The per-share annual dividend grew from $0.68 to $3.40 over that window (2026 is a partial year and excluded from the growth calculation). The smallest annual increase in the window was 8.2% in 2017, which still outpaced inflation by a wide margin and shows the floor on MSFT's annual raises has been meaningful.

Microsoft Corporation Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+10.2%	$2.54 (2022)	$3.40 (2025)
5-Year	+10.2%	$2.09 (2020)	$3.40 (2025)
10-Year	+10.2%	$1.29 (2015)	$3.40 (2025)

Is Microsoft Corporation a Good Dividend Stock?

MSFT suits growth-and-income investors who want dividend expansion from a diversified technology business rather than a high starting yield. The yield is low (below 2%), currently at 0.91%, which is above the 5-year average of 0.72% but still well below what pure income investors typically seek. Twenty consecutive years of dividend increases and a 12.2% CAGR over 14 years are the real draw here. The trade-off is clear: investors accept a sub-1% yield today in exchange for a dividend that has more than quadrupled since 2011 and a payout ratio that leaves ample room for future increases.

Recent Microsoft Corporation Dividend Payments

Payment Date	Amount per Share
2026-08-20	$0.9100
2026-05-21	$0.9100
2026-02-19	$0.9100
2025-11-20	$0.9100
2025-08-21	$0.8300
2025-05-15	$0.8300
2025-02-20	$0.8300
2024-11-21	$0.8300
2024-08-15	$0.7500
2024-05-15	$0.7500

Microsoft Corporation Annual Dividend History

Year	Total Dividends
2026	$2.7300
2025	$3.4000
2024	$3.0800
2023	$2.7900
2022	$2.5400

Related Technology Dividend Stocks

• NVDA — NVIDIA Corporation (0.14% yield)
• AAPL — Apple Inc. (0.34% yield)
• TSM — Taiwan Semiconductor Manufacturing Company Limited (0.89% yield)
• AVGO — Broadcom Inc. (0.70% yield)
• MU — Micron Technology, Inc. (0.05% yield)
• ASML — ASML Holding N.V. (0.47% yield)

Frequently Asked Questions

How often does Microsoft Corporation pay dividends?

Microsoft Corporation pays dividends quarterly. The last dividend amount was $0.91 per share, and the next ex-dividend date is August 20, 2026.

What is Microsoft Corporation's current dividend yield?

The current Microsoft Corporation dividend yield is 0.91%. That sits above the 5-year average yield of 0.72%, making the current entry point slightly more favorable than the recent historical norm.

Has Microsoft Corporation ever cut its dividend?

No dividend cut appears in the available history window from 2011 to 2025. Every year in that period shows a higher annual dividend than the prior year. The 2026 figure is a partial year and does not reflect a cut.

How fast has Microsoft Corporation grown its dividend?

MSFT has grown its dividend at a compound annual growth rate (CAGR) of 12.2% per year from 2011 to 2025. The annual dividend rose from $0.68 per share to $3.40 over that 14-year window.

Is Microsoft Corporation dividend safe?

The 20.6% payout ratio is conservative (below 40%), leaving substantial earnings coverage for the dividend. The business generates recurring subscription revenue across Azure, Office 365, and Dynamics 365, which supports the current payout level.

What type of investor is Microsoft Corporation best suited for?

MSFT fits growth-and-income investors who prioritize dividend growth over current yield. A 12.2% CAGR over 14 years and 20 consecutive years of increases are the defining characteristics, not the sub-1% starting yield.

Why is Microsoft Corporation dividend yield low?

The yield is low because MSFT pays out only 20.6% of earnings as dividends, keeping the annual rate at $3.56 per share relative to a high stock price. Fast dividend growth, not a high starting yield, is the defining feature of this stock.

Latest MSFT News

• Microsoft vs. Nvidia: Which AI giant is the better dividend stock for the long haul? - MSN — MSN
• 2 Dividend Growth Stocks The Market Is Dismissing, But I'm Buying Aggressively - Seeking Alpha — Seeking Alpha
• Top Technology Dividend Champions for July 2026: Microsoft (MSFT), Broadcom (AVGO), and Qualcomm (QCOM) Stand Out - Blockonomi — Blockonomi

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