Microsoft Corporation (MSFT) Dividend Date & History: Stock Dividend for Microsoft Company

Microsoft Corporation - MSFT - Market Position

--- scroll --->
Stock Ticker Home Page Asset Class Sector Industry Investment Strategy Dividend Frequency Geographic Focus
MSFT Microsoft Corporation Stock / Equity Technology Software & Technology Services Growth Quarterly Global

Microsoft, the tech powerhouse behind Windows, Office, and Azure, offers a unique blend of dividend income and growth potential for investors. While its dividend yield (currently around 1%) might not be the highest, its consistent payout history, strong financial performance, and diversified revenue streams make it a compelling option for long-term investors seeking a balance between income and capital appreciation.

Microsoft Corporation - MSFT - Current Market Data

Microsoft Corporation - MSFT - Business Overview

--- scroll --->
Detail

Overview:

Microsoft is a global tech leader renowned for its productivity software (Office, Windows), cloud computing platform (Azure), and gaming consoles (Xbox). It caters to a vast consumer and enterprise market, holding a dominant share in the productivity software segment and a strong presence in cloud computing. Its mission statement is "to empower every person and every organization on the planet to achieve more." Microsoft's core values emphasize customer obsession, innovation, diversity & inclusion, and one Microsoft (working together).

Business Model:

Microsoft generates revenue through various channels:
  • Productivity Software: Licenses for Office and Windows, both for consumers and businesses.
  • Cloud Services: Azure subscriptions and related services offer recurring revenue streams.
  • Gaming: Hardware (Xbox consoles) and software (games, subscriptions) contribute significantly.
  • Other: Search advertising (Bing), LinkedIn subscriptions, and other smaller segments.
Microsoft partners with hardware manufacturers, software developers, and telecom providers in its value chain.

Industry Competition:

Microsoft faces competition across its segments:
  • Productivity: Google Workspace, free open-source software
  • Cloud: Amazon Web Services, Google Cloud Platform
  • Gaming: Sony PlayStation, Nintendo Switch
  • Search: Google
Recent trends like cloud adoption, mobile computing, and the rise of SaaS (Software as a Service) impact the competitive landscape.

Competitive Advantages:

  • Strong Brand and Ecosystem: Microsoft boasts a loyal user base and a robust ecosystem, creating recurring revenue from software upgrades and services.
  • Diversified Revenue Streams: Beyond its core software products, Microsoft's strong cloud business and various other segments offer resilience and growth potential.
  • Continuous Innovation: Microsoft invests heavily in R&D, continuously improving existing products and exploring new technologies like artificial intelligence and mixed reality.
  • Solid Financial Performance: Microsoft generates significant cash flow and maintains a strong balance sheet, enabling reinvestment in future growth and dividend payouts.

Management Team:

Satya Nadella, CEO: Proven track record in cloud computing and leading successful strategic shifts, focusing on cloud-first and mobile-first initiatives.
Amy Hood, CFO: Extensive financial expertise and a focus on capital allocation and shareholder value creation.
Scott Guthrie, Executive Vice President of Cloud & AI: Deep understanding of cloud computing and leading Microsoft's Azure growth.

Financial Performance:

Microsoft consistently delivers strong financial results, with year-over-year revenue and profit growth. Its cloud business thrives, and overall financials remain robust. Upcoming events like product launches and potential economic downturns could impact future performance.

Investment Thesis:

  • Growth Potential: Microsoft's diverse revenue streams, cloud leadership, and continuous innovation suggest continued growth opportunities.
  • Dividend Income: While not a high-yield stock, Microsoft offers a consistent dividend and potential future increases.
  • Capital Appreciation: Microsoft's track record of share price appreciation makes it attractive for long-term capital gains.

Conclusion:

Microsoft presents a compelling investment opportunity for those seeking a balance between growth potential, dividend income, and brand stability. However, investors should consider the competitive landscape, potential economic risks, and its relatively low dividend yield compared to other options.

MSFT Dividend Analysis

--- scroll --->
Aspect Details

MSFT Dividend Data

Microsoft Corporation pays a quarterly dividend of $0.75 per share.

MSFT Dividend Yield

The dividend yield is approximately 0.72%, meaning for every $100 invested in MSFT stock, investors receive $0.72 in dividends annually.

MSFT Dividend History

The most recent ex-dividend date was February 14, 2024. (05.03.2024)

MSFT Dividend Payout & Ratio

The payout ratio is 25.12%, indicating that 25.12% of the company's earnings are paid out as dividends.

MSFT Dividend Stability & Growth

Microsoft's annual dividend is $3.00 per share, with a forward yield of 0.74%.

MSFT Chart

MSFT Comparative Analysis

--- scroll --->
  Apple (MSFT) Microsoft (MSFT) Alphabet (GOOG)

Industry Focus

Consumer hardware, software, and services Enterprise software and cloud computing Search, advertising, and AI

Current Yield

0.53% 0.74% 0.00%

Price-to-Earnings Ratio (P/E)

28.22 37.09 25.05

Investment Strategy

Hardware innovation, brand loyalty, recurring revenue from services Cloud-based subscription services, enterprise solutions Growing advertising dominance, diversification into AI and autonomous vehicles

Technology Stocks

News

Financials

Technical Analysis

Additional Considerations: Highlighting Risks

Investing in Microsoft Corp (MSFT) for its dividends comes with its own set of risks and considerations. One of the key factors to consider is the payout ratio. As of the latest data, MSFT's payout ratio stands at around 25.23%, which is a healthy ratio as it indicates that the company is retaining a significant portion of its earnings for growth and reinvestment. However, investors should monitor this ratio over time for any drastic changes that could impact future dividend payouts.

The next dividend date is another crucial factor for dividend investors. As of now, the next dividend payment is scheduled for March 14, 2024 (06.03.2024). However, the dividend date and the dividend amount can change based on the company's financial health and board decisions. Furthermore, while Microsoft has a strong history of consistent dividend payouts, past performance is not indicative of future results. The company's income, which has shown a 22.38% increase year-over-year, is a positive sign, but investors should also consider the overall growth data and market conditions. In conclusion, while MSFT's dividend is attractive, investors should consider these factors and their own risk tolerance before investing.