- MSFT dividends continue to grow at a double-digit pace despite a recent 9 percent stock pullback.
- Free cash flow strength keeps Microsoft positioned for long-term dividend growth.
- Lower share prices offer dividend investors a more attractive entry point ahead of the next ex-dividend date.
Microsoft’s Dividend Today
Microsoft pays a quarterly dividend of 0.91 per share, up from 0.83 last year. This marks another mid-teens increase and reinforces Microsoft’s status as a reliable dividend growth company.
The yield is about 0.75 percent, which is typical for a mega-cap with strong compounding power. MSFT dividends have grown at just over 10 percent annually over the past five years, supported by a chowder score near 11.
The next ex-dividend date is 19 February 2026, with payment scheduled for 12 March.
Why Dividend Investors Favor Microsoft
Microsoft remains a core holding in many dividend-focused ETFs due to its financial strength, recurring revenue, and durable growth outlook. These qualities are often highlighted in discussions of high-quality tech exposures, as noted in the summary.
The company’s free cash flow per share sits near 20, while its payout ratio remains under 20 percent. This provides ample room for future MSFT dividend increases, even while Microsoft continues investing heavily in cloud and AI capacity.
Stock Pullback Creates a Better Entry Point
Microsoft shares have declined roughly 9 percent over the past three months, driven by concern over record cloud and AI infrastructure spending. Even so, Azure continues to grow at twice the pace of its largest competitor, indicating ongoing demand strength. This performance is reflected in the summary.
For dividend investors, the pullback offers an improved entry point as the lower price slightly lifts the yield and enhances future total return potential if earnings continue to accelerate.
Long-Term Growth Supports Future MSFT Dividends
Strong dividend growth is only sustainable when earnings grow alongside it, and Microsoft continues to meet that requirement. Analysts project double-digit revenue and earnings expansion through 2030, powered largely by Azure and Microsoft’s rapidly advancing AI ecosystem. These outlooks are detailed in the summary.
AI adoption further strengthens Microsoft’s dividend profile. Demand for Copilot and cloud services continues to rise, supporting margin expansion and free cash flow growth. These trends are emphasized in the summary.
Should Dividend Investors Buy MSFT Now
Microsoft is not a high-yield stock, and it is unlikely to become one. However, its combination of durable cash generation, reliable double-digit dividend growth, and decades of compounding makes it a foundational dividend growth holding. This is reinforced by long-term performance data highlighted in the summary.
With the stock trading below recent highs and the next ex-dividend date approaching, long-term dividend investors may find today’s market conditions appealing. Those focused on growing income through MSFT dividends rather than high initial yield may see this pullback as a timely opportunity.
