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Microsoft Corporation Dividends

MSFT Stock Analysis

Page title

Section title

Dividend Yield
0.79%
Payout Ratio
25.40%
Dividend Amount Per Share
$3
Last Ex-Dividend Date
Nov 21, 2024

MSFT Dividend Safety

MSFT paid out 25.40% of its $88B earnings as dividends over the last 12 months.

Very Safe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

MSFT's Dividend Payout Ratio of 25.402% is considered safe for the Technology sector, indicating that the company retains enough earnings to support business growth.

Interest Rate Coverage

MSFT's Interest Coverage Ratio of 37.286 indicates strong financial health with easy coverage of interest expenses.

Income Quality

MSFT shows excellent income quality with a ratio of 1.345. This indicates high-quality earnings and low risk of dividend cuts.

MSFT Dividend Growth

Microsoft Corporation(MSFT) offers a dividend yield of 0.79% and pays $3 in dividends per share. Explore the historical dividend growth of MSFT.

Dividend Stability

MSFT has maintained stable dividend payments over the past 11 years with no cuts over 5%.

Dividend Growth

MSFT's dividend payments have increased by 10.23% annually over the last 5 years.

Earnings Growth

MSFT's earnings have grown by 14.759% annually over the last 5 years. This strong earnings growth suggests a stable and increasing income stream, supporting the sustainability and potential growth of dividend payouts.

MSFT Dividend Yield Attractiveness

Microsoft Corporation(MSFT) provides a dividend yield of 0.79%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

MSFT

Peers

Sector

Industry

0.79%

0.92%

1.97%

2.31%

Dividend Yield

MSFT's dividend yield of 0.79% is considered good compared to the sector average of 1.967%, providing a strong safety margin for investors.

MSFT Cash Flow

Over the past 12 months, MSFT generated $245B in revenue, produced $74B in free cash flow, and distributed $22B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

MSFT's free cash flow has grown by 10.366% annually over the last 5 years, indicating a strong ability to generate cash and support dividend payments.

MSFT Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Microsoft Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.