Microsoft Corporation (NASDAQ:MSFT) Raises Dividend to $0.98 Per Share

Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend on Monday, September 14th. Stockholders of record on Thursday, November 19th will be given a dividend of 0.98 per share by the software giant on Thursday, December 10th. This represents a c) annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. This is a 7.7% increase from Microsoft’s previous quarterly dividend of $0.91.

Microsoft has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 23 consecutive years. Microsoft has a dividend payout ratio of 24.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Microsoft to earn $23.26 per share next year, which means the company should continue to be able to cover its $3.64 annual dividend with an expected future payout ratio of 15.6%.

Microsoft Price Performance

MSFT stock opened at $497.12 on Wednesday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company’s 50-day moving average is $460.39 and its 200-day moving average is $420.90. The stock has a market capitalization of $3.69 trillion, a PE ratio of 27.68, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft has a 1 year low of $349.20 and a 1 year high of $553.72.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the business earned $3.65 EPS. Equities research analysts expect that Microsoft will post 19.61 EPS for the current fiscal year.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure reaches a major milestone: Azure annual revenue surpassed $100 billion, while consumption from agentic AI helped drive approximately 43% year-over-year revenue growth in the latest quarter. The milestone supports the view that Microsoft is converting AI demand into cloud revenue. Azure agentic AI growth article
• Positive Sentiment: Dividend increased: Microsoft raised its quarterly dividend 8% to $0.98 per share, payable December 10 to shareholders of record November 19. The increase signals confidence in cash generation and modestly improves shareholder returns. Microsoft dividend increase
• Positive Sentiment: Analyst outlook remains favorable: Citizens JMP reaffirmed a Market Outperform rating with a $550 price target, citing Microsoft’s cloud and AI opportunity. Recent commentary also points to Copilot adoption and enterprise software strength as long-term catalysts.
• Positive Sentiment: Improved Azure disclosure could support valuation: Microsoft plans to report Azure revenue directly in quarterly results, giving investors greater visibility into whether AI-related infrastructure spending is producing sufficient returns. Microsoft Azure reporting change
• Neutral Sentiment: AI safety strategy: CEO Satya Nadella and Microsoft AI chief Mustafa Suleyman are advocating stronger safeguards and human control over advanced AI. The approach may reduce regulatory and reputational risks, but a slower development pace could raise competitiveness concerns.
• Neutral Sentiment: Stock technically extended: MSFT recently cleared a $466.32 cup-base buy point and is trading well above its 50-day and 200-day moving averages. Strong momentum is constructive, although the distance from the breakout level increases pullback risk.
• Negative Sentiment: Executive selling adds an overhang: EVP Amy Hood sold 41,674 shares for approximately $20.8 million under a pre-arranged Rule 10b5-1 plan. The scheduled nature of the transaction reduces its signaling value, but it follows a broader pattern of insider sales without reported insider purchases.
• Negative Sentiment: Spending and valuation remain concerns: Investors continue to scrutinize Microsoft’s substantial AI and data-center capital expenditures, while its valuation is higher than some major peers. Recent large-scale security patching also underscores ongoing cybersecurity execution risks.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.