Microsoft Corp (MSFT) Dividend Analysis
Comprehensive dividend yield, safety, growth, and income analysis for MSFT.
Microsoft Corp (MSFT) pays a modest 0.73% dividend yield, or $3.64 per share annually at a stock price of $495.40. 20 consecutive years of dividend increases — qualifying as a Dividend Contender (10+ years). The payout ratio of 20% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.9x. Dividend growth is slowing — the 3-year CAGR of 9.4% trails the 5-year rate of 10.2% and the 10-year rate of 9.5%. The most recent ex-dividend date was August 20, 2026.
Dividend Overview
Microsoft Corp (MSFT) pays a modest 0.73% dividend yield, or $3.64 per share annually at a stock price of $495.40. MSFT has increased its dividend for 20 consecutive years.
Dividend Safety
The payout ratio of 20% is well within sustainable levels, leaving room for future increases.
DRIP Projection
$10,000 invested in MSFT with dividends reinvested would grow to approximately $11,247 after 10 years, generating roughly $218/year in dividend income. This projection assumes the current 0.73% yield and a 10.2% annual dividend growth rate with all dividends reinvested.
| Year | Portfolio Value | Annual Income | Total Return |
|---|---|---|---|
| Year 1 | $10,073 | $82 | +1% |
| Year 5 | $10,459 | $125 | +5% |
| Year 10 | $11,247 | $218 | +12% |
| Year 15 | $12,649 | $399 | +26% |
| Year 20 | $15,290 | $784 | +53% |
Assumes constant share price and reinvestment at current price. Actual results will vary. Try our DRIP Calculator for a customized projection with real historical data.
Payment Schedule
You must own shares before the ex-dividend date to receive the upcoming payment. Payment typically arrives 2-4 weeks after the ex-date.
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