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

Key Points

• Microsoft declared a quarterly dividend of $0.91 per share, payable June 11 to shareholders of record May 21 (ex‑dividend May 21), implying an annualized $3.64 and a ~0.9% yield.
• Dividend is well‑covered and historically durable: the company has raised its payout for 23 consecutive years and maintains a payout ratio around 24%, with analysts expecting earnings sufficient to continue coverage.
• Recent results and outlook support the payout but carry caveats: Microsoft beat Q results (EPS $4.14 vs $3.86; revenue $81.3B), has a ~$3.0T market cap and is benefiting from AI monetization and Azure expansion, while regulatory scrutiny and insider selling present near‑term risks.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) announced a quarterly dividend on Tuesday, March 10th. Stockholders of record on Thursday, May 21st will be given a dividend of 0.91 per share by the software giant on Thursday, June 11th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st.

Microsoft has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 23 consecutive years. Microsoft has a dividend payout ratio of 24.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Microsoft to earn $14.70 per share next year, which means the company should continue to be able to cover its $3.64 annual dividend with an expected future payout ratio of 24.8%.

Microsoft Price Performance

Shares of MSFT stock traded down $0.88 during trading on Wednesday, hitting $404.88. The company had a trading volume of 25,298,857 shares, compared to its average volume of 37,096,766. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. The firm has a market capitalization of $3.01 trillion, a P/E ratio of 25.32, a price-to-earnings-growth ratio of 1.60 and a beta of 1.10. The stock's 50-day moving average price is $432.22 and its 200 day moving average price is $478.00. Microsoft has a one year low of $344.79 and a one year high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping analysts' consensus estimates of $3.86 by $0.28. The firm had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The company's revenue was up 16.7% on a year-over-year basis. During the same quarter last year, the company earned $3.23 EPS. Equities analysts expect that Microsoft will post 13.08 EPS for the current fiscal year.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst support: Jefferies reiterated a Buy on MSFT with a $675 price target, reflecting continued bullish analyst conviction that helps underpin demand for the stock. Here’s What Jefferies Think About Microsoft (MSFT)
• Positive Sentiment: Shareholder return: Microsoft declared a quarterly dividend of $0.91 per share (payable June 11), which supports the income profile for long-term holders and can attract yield-focused demand. Microsoft announces quarterly dividend
• Positive Sentiment: Monetization / product upgrades: Microsoft is pushing enterprise AI monetization — new higher‑tier M365/“Frontier” offerings (E7 / $99) and Copilot Cowork agents built with Anthropic aim to raise ARPU and drive Azure consumption. This supports the cloud revenue flywheel even if adoption is gradual. Microsoft Unveils $99 'Frontier' AI Subscription
• Neutral Sentiment: Xbox product timing: Microsoft said its next-generation Xbox prototype will be shipped to developers in 2027 — positive for the gaming pipeline long term but unlikely to materially move enterprise/AI-driven revenue in the near term. Microsoft plans to ship prototype of next Xbox console to developers in 2027
• Neutral Sentiment: Capacity build: Local data‑center activity (Granger site moving to construction) signals Azure capacity expansion to support AI workloads, a multi‑quarter positive for cloud revenue but also a near‑term capex drag. Microsoft Data Center in Granger to Start Construction Soon
• Neutral Sentiment: Valuation debate: Commentary noting MSFT’s premium P/S and mixed growth signals (AI capex, Azure deceleration risk) is creating divergent analyst views that amplify intraday moves and can keep volatility elevated. Microsoft Trades at a Premium P/S: Buy, Sell or Hold the Stock?
• Negative Sentiment: Regulatory / political risk: Microsoft filed an amicus brief backing Anthropic in its fight against the Pentagon’s supply‑chain designation. While meant to protect Azure consumption, the move exposes MSFT to heightened regulatory and political scrutiny that could lead to contract disruptions or higher compliance costs. Microsoft files amicus brief in support of Anthropic's lawsuit with US DOD
• Negative Sentiment: Sentiment and positioning: insiders selling (EVP Kathleen Hogan disclosed a multi‑million dollar sale) and a recent rise in short interest add technical pressure and can magnify downward moves while investors reassess conviction. SEC Form 4 — Kathleen T. Hogan sale

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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