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Microsoft Corp. (MSFT) logo

Microsoft Corp.

S&P 500
MSFT|Technology|Software - Infrastructure|$415.12|P/E 24.7|MCap 3.1T|NASDAQ

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

97/ 100Very Safe

MSFT's dividend appears very safe. Strengths include a 20.7% earnings payout ratio & 35.5% fcf payout ratio. The dividend has been growing at a 10.22% 5-year CAGR.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 20.7%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 35.5%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 17.8%Operating cash flow strongly supports the payout.

Risks

No material risks identified across rated metrics.

Payout & Coverage

Very Safe
Earnings Payout Ratio
20.7%Very Safe
FCF Payout Ratio
35.5%Very Safe
CFO Payout Ratio
17.8%Very Safe
Interest Coverage
52.8xVery Safe

Balance Sheet

Safe
Net Debt / Total Assets
4.9%Very Safe
Current Ratio
1.3xCaution
Debt-to-Equity
30.3Very Safe

Profitability

Very Safe
Return on Equity
34.0%Very Safe
Operating Margin
46.3%Very Safe
Gross Margin
67.6%Very Safe
Profit Margin Stability
Very StableVery Safe

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
10.2%Very Safe
Earnings Stability
GrowingVery Safe

About Microsoft Corp.

Microsoft Corp. is a leading technology company that develops, licenses, and supports a broad portfolio of consumer and enterprise software, services, devices, and solutions. Founded in 1975 by Bill Gates and Paul Allen and headquartered in Redmond, Washington, it operates through three primary segments: Productivity and Business Processes, which includes legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, and Dynamics; Intelligent Cloud, encompassing Azure infrastructure and platform-as-a-service, Windows Server OS, and SQL Server; and More Personal Computing, featuring Windows Client, Xbox gaming, Bing search, display advertising, Surface devices, and HoloLens. With approximately 228,000 employees, Microsoft Corp. drives digital transformation via its intelligent cloud and edge computing initiatives, empowering individuals and organizations worldwide. Renowned for Windows operating systems and the Office productivity suite, it holds significant influence in public cloud computing, enterprise software, gaming, and hardware, maintaining a substantial market presence in the technology sector.

Dividend Overview

Dividend Yield

0.86%

Annual Dividend

$3.56

Frequency

Quarterly

Payout Ratio

20.73%

FCF Payout Ratio

35.46%

Stock Price

$415.12

52-Week Range

$356.28 $555.45

Dividend History (2016–2025)

MSFT annual dividend per share and yield history

Earnings & Profitability

MSFT earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

May 21, 2026

Next Payment Date

June 11, 2026

Dividend Growth

3-Year Dividend CAGR

10.21%

5-Year Dividend CAGR

10.22%

10-Year Dividend CAGR

10.18%

3-Year Total Growth

33.86%

5-Year Total Growth

62.68%

10-Year Total Growth

163.57%

Income Calculator

MSFT Dividend Calculator

Total Investment

$41,512.00

Annual Income

$356.00

Quarterly Income

$89.00

Monthly Income

$29.67

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Frequently Asked Questions

What is MSFT's current dividend yield?
Microsoft Corp. (MSFT) currently has a dividend yield of 0.86%, based on a stock price of $415.12 and an annual dividend of $3.56.
When is MSFT's next dividend payment date?
MSFT's next ex-dividend date is 2026-05-21 and the next payment date is 2026-06-11. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does MSFT pay in dividends per year?
Microsoft Corp. paid $3.40 per share in annual dividends in 2025. The dividends are paid quarterly.
Has MSFT been increasing its dividend?
Microsoft Corp. has grown its dividend at a 5-year CAGR of 10.22% and a 10-year CAGR of 10.18%.
Is MSFT's dividend safe?
Microsoft Corp. has a payout ratio of 20.73%. Its free cash flow payout ratio is 35.46%. A payout ratio below 60% is generally considered sustainable.
How is MSFT's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Microsoft Corp.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for technology companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.