MSFT – Dividend Returns, History & Calculator

Dividend Contender 23 Years

Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Windows Commercial, Power BI, Exchange,

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Company Info

Symbol MSFT
Company Microsoft Corporation
Sector Technology
Industry Software - Infrastructure
Website Visit
Market Cap $3,866,511.8M

Price Data

Price $520.17
Price Change -2.31
Price Change % -0.44%
Next Earnings Oct 29, 2025
Low (52W) $344.79
High (52W) $555.45

Dividend Data

Div Yield 63.83%
5Y Avg Yield 76.47%
Current Div $0.830
Payouts/Year 4
Annualized $3.320
Previous Div $0.830
Ex-Date May 15, 2025

Growth Rates

Chowder Number 10.9
DGR 1Y -17.0%
DGR 3Y -6.4%
DGR 5Y 10.2%
DGR 10Y 7.5%

Total Returns

TTR 1Y - With Specials 25.6%
TTR 3Y - With Specials 22.6%
TTR 1Y - No Specials 25.6%
TTR 3Y - No Specials 22.6%

Fair Value

Fair Value (P/E 10) $218.31
FV (P/E 10) % 138.0%
Fair Value (Peter Lynch) $68.15
FV (Peter Lynch) % 663.0%
Fair Value (Blended) $254.21
FV (Blended) % 105.0%

Financial Metrics

Revenue 1Y 14.9%
NPM 36.2%
CF/Share $18.32
ROE 33.3%
Current R 1.4x
Debt/Capital 14.0%
ROTC 27.4%
P/E 38.2x
P/BV 11.3x
PEG 2.24
📊 Financial data last updated: August 18, 2025 12:44 pm

MSFT 10-yr Total Return ($10,000 invested)

This analysis of MSFT demonstrates the power of dividend reinvestment over a 10-year period with a $10,000 initial investment. The dividend reinvestment strategy delivered a 27.2% CAGR, representing exceptional long-term performance. While recent 5-year returns averaged 20.7% annually, the exceptional 10-year performance of 27.2% demonstrates sustained long-term growth. The DRIP strategy provided 17% more total return compared to collecting dividends as cash, highlighting the compounding effect of reinvestment.

With DRIP No DRIP

Total Return with and without DRIP (MSFT)

Over the selected period, investing $10,000 in MSFT would grow to $127,970 with DRIP (1,179.7%), and $115,113 without DRIP (1,051.1%).

MSFT Dividend Reinvestment Snowball

Investing $10,000 + $100/mo in MSFT with historic price growth (27.38%) and dividend growth (10.35%) produces dramatically different outcomes depending on whether you reinvest dividends.

After 20 Years

Your Investment: $34,000

With DRIP

Portfolio: $1,959,924

Annual Dividend: $713

Yield on Cost: 2.10%

Total Dividends: $5,713

No DRIP

Portfolio: $1,898,331

Total Dividends: $5,548

After 30 Years

Your Investment: $46,000

With DRIP

Portfolio: $22,130,347

Annual Dividend: $1,918

Yield on Cost: 4.17%

Total Dividends: $17,311

No DRIP

Portfolio: $21,351,825

Total Dividends: $16,735

Milestones on the way

By year 13, the compounding really starts to show. Your total dividends collected reach $2,297 against a total investment of $25,600. At this point, your portfolio is throwing off $353 per year in dividends alone.

By year 17, the annual dividend climbs to around your initial contribution. For a starting investment of $10,000, the yearly dividend now sits at approximately $529, a powerful “income on autopilot” milestone.

After two decades, cumulative dividends total $5,713 versus $34,000 invested, nearly a 17% recovery of capital purely from income. Yield on cost reaches 2.10%.

At year 25, the income engine takes over. The portfolio’s annual dividend of $1,171 is greater than total contributions to date ($40,000), and cumulative dividends exceed $10,108.

By year 30, the DRIP snowball is in full force. Yearly income reaches $1,918, cumulative dividends total $17,311, and the DRIP portfolio value stands at $22,130,347, compared with $21,351,825 if dividends weren’t reinvested.

How we estimate these numbers

We use the latest calculator inputs for MSFT, price $517.10, dividend per period $0.83 (4x/year), along with historic growth assumptions: price growth 27.38% and dividend growth 10.35% annually.

We simulate month by month for 30 years. Every month, a $100 contribution is added and converted to shares at that month’s price.

Dividends are paid roughly evenly across the year based on the dividend frequency; in the DRIP path, each payout immediately buys additional shares at the then-current price.

In the No-DRIP path, dividends accrue as cash. Prices grow using a monthly rate derived from the annual price growth and dividends per share increase once per year at the annual dividend growth rate.

This model isn’t investment advice, it’s a simple, transparent framework that illustrates how reinvesting dividends can accelerate both income and total return over time.

Projected Future Returns & Dividends for MSFT

Based on past 10-year performance, here are MSFT growth metrics:

Share price CAGR of +11.01%
Dividend CAGR of +10.35%

Using MSFT CAGR metrics, we can estimate that your initial $10,000 investment, over the next 10 years, should grow as follows:

MSFT (DRIP)MSFT (No DRIP)
Current Price$520.17$520.17
Start Shares19.2219.22
Start Value$10,000$10,000
After 10 years:
Final Share Count20.4519.22
Dividends Payment$8.89$8.89
Annual Dividends$181$171
Yield on cost1.81%1.71%
Share Price$1,478.46$1,478.46
Total Dividends$1,180$1,142
Final Value$30,228$29,564

Estimated Future Value + Dividends – MSFT

Dividend History: Payments & Yield

Shows quarterly dividend payments with trailing yield and a 5-year rolling average overlay. Use the range pills to switch the visible period.

Yield Dividend

Dividend Growth

Lifetime quarterly dividend amounts, with range controls for 1Y/2Y/5Y/10Y. Useful to visualize the cadence and pace of dividend increases over time.

Dividend

Dividend Payments & Yield

Quarterly dividends with TTM yield and a 5‑year rolling average overlay. Helps compare current yield versus recent history across different ranges.

Dividend 5-yr Rolling AVG Yield

MSFT Dividend History

Ex-Date Payment Date Amount TTM Yield Forward Yield Price on Ex-Date
05/15/202505/15/2025$0.8300.72%0.73%$453.13
02/20/202502/20/2025$0.8300.76%0.80%$416.13
11/21/202411/21/2024$0.8300.75%0.80%$412.87
08/15/202408/15/2024$0.7500.71%0.71%$421.03
05/15/202405/15/2024$0.7500.69%0.71%$423.08
02/14/202402/14/2024$0.7500.70%0.73%$409.49
11/15/202311/15/2023$0.7500.75%0.81%$369.67
08/16/202308/16/2023$0.6800.85%0.85%$320.40
05/17/202305/17/2023$0.6800.85%0.87%$314.00
02/15/202302/15/2023$0.6800.97%1.01%$269.32
11/16/202211/16/2022$0.6801.05%1.13%$241.73
08/17/202208/17/2022$0.6200.85%0.85%$291.32
05/18/202205/18/2022$0.6200.95%0.98%$254.08
02/16/202202/16/2022$0.6200.79%0.83%$299.50
11/17/202111/17/2021$0.6200.68%0.73%$339.12
08/18/202108/18/2021$0.5600.77%0.77%$290.73
05/19/202105/19/2021$0.5600.90%0.92%$243.12
02/17/202102/17/2021$0.5600.88%0.92%$244.20
11/18/202011/18/2020$0.5600.99%1.06%$211.08
08/19/202008/19/2020$0.5100.97%0.97%$209.70
05/20/202005/20/2020$0.5101.07%1.10%$185.66
02/19/202002/19/2020$0.5101.04%1.09%$187.28
11/20/201911/20/2019$0.5101.26%1.36%$149.62
08/14/201908/14/2019$0.4601.37%1.37%$133.98
05/15/201905/15/2019$0.4601.43%1.46%$126.02
02/20/201902/20/2019$0.4601.64%1.72%$107.15
11/14/201811/14/2018$0.4601.64%1.75%$104.97
08/15/201808/15/2018$0.4201.56%1.56%$107.66
05/16/201805/16/2018$0.4201.70%1.73%$97.15
02/14/201802/14/2018$0.4201.78%1.85%$90.81
11/15/201711/15/2017$0.4201.92%2.02%$82.98
08/15/201708/15/2017$0.3902.13%2.13%$73.22
05/16/201705/16/2017$0.3902.20%2.25%$69.41
02/14/201702/14/2017$0.3902.32%2.42%$64.57
11/15/201611/15/2016$0.3902.50%2.65%$58.87
08/16/201608/16/2016$0.3602.51%2.51%$57.44
05/17/201605/17/2016$0.3602.75%2.85%$50.51
02/16/201602/16/2016$0.3602.62%2.82%$51.09
11/17/201511/17/2015$0.3602.44%2.72%$52.97
08/18/201508/18/2015$0.3102.62%2.62%$47.27
05/19/201505/19/2015$0.3102.54%2.61%$47.58
02/17/201502/17/2015$0.3102.71%2.85%$43.58
11/18/201411/18/2014$0.3102.36%2.54%$48.74
08/19/201408/19/2014$0.2802.47%2.47%$45.33
05/13/201405/13/2014$0.2802.65%2.77%$40.42
02/18/201402/18/2014$0.2802.73%2.99%$37.42
11/19/201311/19/2013$0.2802.64%3.05%$36.74
08/13/201308/13/2013$0.2302.85%2.85%$32.23
05/14/201305/14/2013$0.2302.65%2.74%$33.53
02/19/201302/19/2013$0.2303.07%3.28%$28.05
11/13/201211/13/2012$0.2303.06%3.40%$27.09
08/14/201208/14/2012$0.2002.66%2.66%$30.13
05/15/201205/15/2012$0.2002.52%2.65%$30.21
02/14/201202/14/2012$0.2002.38%2.64%$30.25
11/15/201111/15/2011$0.2002.54%2.99%$26.74
08/16/201108/16/2011$0.1602.52%2.52%$25.35
05/17/201105/17/2011$0.1602.49%2.61%$24.52
02/15/201102/15/2011$0.1602.15%2.37%$26.96
11/16/201011/16/2010$0.1602.13%2.48%$25.81
08/17/201008/17/2010$0.1302.10%2.10%$24.71
05/18/201005/18/2010$0.1301.82%1.82%$28.60
02/16/201002/16/2010$0.1301.83%1.83%$28.35
11/17/200911/17/2009$0.1301.73%1.73%$30.00
08/18/200908/18/2009$0.1302.21%2.21%$23.58
05/19/200905/19/2009$0.1302.46%2.56%$20.31
02/17/200902/17/2009$0.1302.65%2.87%$18.09
11/18/200811/18/2008$0.1302.34%2.65%$19.62
08/19/200808/19/2008$0.1101.61%1.61%$27.32
05/13/200805/13/2008$0.1101.44%1.48%$29.78
02/19/200802/19/2008$0.1101.49%1.56%$28.17
11/13/200711/13/2007$0.1101.19%1.28%$34.46
08/14/200708/14/2007$0.1001.41%1.41%$28.27
05/15/200705/15/2007$0.1001.26%1.29%$30.90
02/13/200702/13/2007$0.1001.31%1.38%$29.01
11/14/200611/14/2006$0.1001.27%1.37%$29.23
08/15/200608/15/2006$0.0901.42%1.46%$24.62
05/15/200605/15/2006$0.0901.47%1.56%$23.15
02/15/200602/15/2006$0.0901.23%1.34%$26.88
11/15/200511/15/2005$0.0801.16%1.16%$27.50
08/15/200508/15/2005$0.08012.24%1.18%$27.13
05/16/200505/16/2005$0.08013.02%1.26%$25.49
02/15/200502/15/2005$0.08013.11%1.23%$25.93
11/15/200411/15/2004$3.0812.41%44.98%$27.39
08/23/200408/23/2004$0.0801.17%1.17%$27.24
10/15/200310/15/2003$0.1600.83%2.20%$29.07
02/19/200302/19/2003$0.0800.33%1.30%$24.53
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Dividend Payout Ratio

Tracks the percentage of earnings paid out as dividends each quarter. Lower and stable ratios often indicate safer, more sustainable payouts.

Payout Ratio

Dividend to Free Cash Flow Ratio

Shows dividends as a percentage of free cash flow. Consistently high values may signal limited reinvestment capacity or potential dividend risk.

Dividend/FCF Ratio

Share Price

Historical closing price with range controls. Table view includes quarter‑over‑quarter and year‑over‑year changes for additional context.

MSFT Price

Price to Earnings

MSFT trades at a 145.2x price-to-earnings ratio. This elevated valuation suggests investors expect strong future growth.

Price to Sales

MSFT trades at a 52.5x price-to-sales ratio, providing insight into market valuation relative to revenue generation.

Revenue

MSFT generated $70.4B in revenue. Revenue has grown by 42% over the period.

Net Income

MSFT reported $25.5B in net income. Net income has grown by 40% over the period.

Revenue vs Net Income

MSFT generated $70.4B in revenue with net income of $25.5B, representing a 36.1% net profit margin.

Gross Profit

MSFT achieved $54.2B in gross profit, showing revenue after direct production costs.

Operating Income

MSFT generated $24.7B in operating income, representing profit from core business operations.

EBITDA

MSFT generated $28.3B in EBITDA, measuring operational profitability before interest, taxes, depreciation, and amortization.

Operating Cash Flow

MSFT generated $29.3B in operating cash flow, demonstrating the company’s ability to convert earnings into cash.

Free Cash Flow

MSFT generated $26.8B in free cash flow. Free cash flow has increased by 40% over the period.

Free Cash Flow / Share

MSFT generates $3.61 in free cash flow per share. FCF per share has grown by 40% over the period.

Earnings Per Share (EPS)

MSFT reported $3.42 in earnings per share. EPS has grown by 40% over the period.

Return on Equity (ROE)

MSFT delivered a 30.1% return on equity, indicating how effectively the company generates returns for shareholders.

Return on Assets (ROA)

MSFT achieved a 18.1% return on assets, measuring how efficiently the company uses its assets to generate profit.

Net Profit Margin

MSFT maintains a 36.1% net profit margin, showing the percentage of revenue retained as profit after all expenses.

Gross Profit Margin

MSFT operates with a 76.9% gross profit margin, reflecting pricing power and cost efficiency in core operations.

Cash & Debt

MSFT holds $10.6B in cash against $3.5B in debt, resulting in a net cash position of $7.0B.

Shares Outstanding

MSFT has 7.4B shares outstanding.

Stock-Based Comp

MSFT reported $1.8B in stock-based compensation. Over the period, stock-based compensation has increased by 42%.

FCF vs Stock Based Comp

MSFT generated $26.8B in free cash flow while spending $1.8B on stock-based compensation, representing 7% of FCF.

FCF vs FCF / Share

MSFT reported $26.8B in free cash flow, translating to $3.61 per share.

Revenue: Actual + Estimates

This chart tracks MSFT revenue: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

EPS: Actual + Estimates

This chart tracks MSFT eps: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

Net Income: Actual + Estimates

This chart tracks MSFT net income: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

EBITDA: Actual + Estimates

This chart tracks MSFT ebitda: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

Disclaimer: The information on this page is for educational and entertainment purposes only and does not constitute financial advice. Do your own research and consult a qualified financial advisor before making investment decisions. Data sources include Yahoo Finance and other third-party providers and may contain errors or delays.

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