Microsoft Corporation (NASDAQ:MSFT) Announces Quarterly Dividend of $0.91

Key Points

• Microsoft Corporation has announced a quarterly dividend of $0.91 per share, which marks a 9.6% increase from the previous dividend of $0.83.
• Microsoft maintains a payout ratio of 21.9%, indicating its dividend is well-supported by earnings, with analysts projecting earnings of $14.70 per share for the upcoming year.
• Microsoft's stock has shown significant performance, trading at $515.36 recently, with a market capitalization of $3.83 trillion.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) announced a quarterly dividend on Monday, September 15th, RTT News reports. Stockholders of record on Thursday, November 20th will be paid a dividend of 0.91 per share by the software giant on Thursday, December 11th. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. This is a 9.6% increase from Microsoft's previous quarterly dividend of $0.83.

Microsoft has a payout ratio of 21.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microsoft to earn $14.70 per share next year, which means the company should continue to be able to cover its $3.32 annual dividend with an expected future payout ratio of 22.6%.

Microsoft Price Performance

Shares of Microsoft stock traded up $5.46 on Monday, reaching $515.36. 17,109,560 shares of the stock were exchanged, compared to its average volume of 22,139,311. The firm's 50 day moving average is $510.55 and its 200-day moving average is $454.62. Microsoft has a one year low of $344.79 and a one year high of $555.45. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.35 and a current ratio of 1.35. The firm has a market cap of $3.83 trillion, a PE ratio of 37.78, a P/E/G ratio of 2.23 and a beta of 1.04.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The software giant reported $3.65 EPS for the quarter, beating the consensus estimate of $3.35 by $0.30. The business had revenue of $76.44 billion during the quarter, compared to the consensus estimate of $73.79 billion. Microsoft had a net margin of 36.15% and a return on equity of 32.44%. The firm's revenue was up 18.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.95 EPS. Microsoft has set its Q1 2026 guidance at EPS. As a group, analysts anticipate that Microsoft will post 13.08 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Satya Nadella sold 149,205 shares of Microsoft stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $504.78, for a total transaction of $75,315,699.90. Following the completion of the transaction, the chief executive officer owned 790,852 shares of the company's stock, valued at $399,206,272.56. This trade represents a 15.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,850 shares of Microsoft stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $527.32, for a total transaction of $2,557,502.00. Following the transaction, the executive vice president directly owned 39,111 shares of the company's stock, valued at $20,624,012.52. This represents a 11.03% decrease in their position. The disclosure for this sale can be found here. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microsoft

Hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new stake in Microsoft in the fourth quarter worth $44,343,058,000. Kingstone Capital Partners Texas LLC grew its holdings in Microsoft by 564,387.1% in the second quarter. Kingstone Capital Partners Texas LLC now owns 90,549,369 shares of the software giant's stock worth $45,040,162,000 after purchasing an additional 90,533,328 shares during the period. Nuveen LLC acquired a new stake in Microsoft in the first quarter worth $18,733,827,000. GAMMA Investing LLC grew its holdings in Microsoft by 40,290.4% in the first quarter. GAMMA Investing LLC now owns 46,695,303 shares of the software giant's stock worth $17,528,950,000 after purchasing an additional 46,579,693 shares during the period. Finally, Laurel Wealth Advisors LLC grew its holdings in Microsoft by 49,640.3% in the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant's stock worth $14,905,904,000 after purchasing an additional 29,906,791 shares during the period. Institutional investors own 71.13% of the company's stock.

Microsoft Company Profile

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.

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