Microsoft
Microsoft Dividend
Microsoft pays a quarterly dividend in the months of Dec, March, Jun, Sept each year.
The companies dividend has been paid and increased for 22 consecutive years and it currently yields 0.76%.
Total current dividend for 2024 is $3.00 per share or $0.75 per quarter
A recently announced Q1 dividend for 2025 is $0.83 cents annualised at $3.32 per share, this is due to be paid in December 2024.
For research purposes here are the last ten years annualised dividends:
2024 $3.00
2023 $2.72
2022 $2.48
2021 $2.24
2020 $2.04
2019 $1.84
2018 $1.68
2017 $1.56
2016 $1.44
2015 $1.24
2014 $.1.12
One of the main reasons for including the MSFT stock into the portfolio is the growing dividend.
With annual increases of +10% YOY (Year over Year) growth, it’s a stock I wish I included some years earlier.
As this portfolio is all about planning for my retirement and financial independence, by including The Microsoft Corporation it will help future income as this equity is well known as a dividend growth stock.
I only added small position in MSFT on a recent market pullback for fear of jumping into the stock when the technology sector was at all time highs.
Late to the game in introducing quality technology stocks in the portfolio I may be, however caution has only been due to extremely high stock valuations.
I only ever purchase full shares, so the Microsoft holding is in full shares (Not fractional) with the intention to increase further holdings in the near future (or when I perceive to be at a reasonable price), the aim is to make a significant holding over time.
For now the dividend contribution maybe small however knowing that it is a stock that grows its annual dividend over inflation, it is a reassuring investment thesis.
To date we have only received two quarterly payments totalling £5.75.
View how Microsoft’s income contributes to all the 2024 dividends by clicking here.
Please see the file below for a full breakdown of income:
Microsoft average five year share price
The lowest share price over the past 5 years was $135.00 on the 22/03/2024 at the beginning of the pandemic.
The highest share price over the past 5 years was $468.35 on 07/07/2024
Based purely on my own personal experience and using my own metrics to value equities at the time of writing this page 26/09/2024:
I would be looking to purchase further shares between the price parameters of $320 to $400 US dollars.
Microsoft has a legacy Moat and is a well established organisation, it is one of the World’s greatest companies.
With great companies usually comes great share prices so comes with a business and market cap in the $3 Trillion’s range, sometimes it’s hard to know if, like with history we are in a tech bubble or not.
Where today’s chatter is all about techs AI hype regarding other businesses and their valuations etc, it is a little different with Microsoft though.
Talking AI, I see the well established Moat as an easy win when we discuss monetising Artificial Intelligence, utilising its existing software as it is already embedded in businesses across the entire globe, if MSFT cannot monetise AI no one else will.
Yes the capital spend for AI may be expensive however Microsoft has the resources to support the initial investment.
If business owners can increase productivity, reduce costs while taking advantage of AI then there aren’t too many other options out there. Especially software companies that are so entrenched in the daily aspects of management systems, who else really offers what Microsoft does.
I see MSFT as a great example of being able to utilise AI to further advance industry whilst increasing both the bottom and top lines.
About MSFT
About the company:
Microsoft Corporation (NASAQ:MSFT) is an American technology company primarily known for its software and Windows services. It’s Headquarters are located in Redmond, Washington.
In 1981 the first IBM computers were launched with MS- DOS operating system. Eight years later in 1989 the first Office suite was launched, followed by its first Windows 3.0 application. Years later with successive upgrades and improved versions of Windows, MS Office and all the associated Word, Excel, Access and PowerPoint packages, the majority of the Worlds businesses still operates using Windows based systems today.
Microsoft soon became well known as the leading software company whose products transformed the industrials humble pen and paper into the digital world we live in today.
Heck, I remember giving a presentation using the old ‘overhead projector’ using transparent viewing foils back in the day……
Thanks to Microsoft it led the way with PowerPoint.
Then rather than old school books for calculations we got Excel, linking sheets and data but more importantly formulas we used to quickly and effectively managed pricing and costs. Global corporations digitally evolved using Microsoft’s technologies.
Gaming
Just past the millennium in 2001 Microsoft launches the X-Box stepping into the world of gaming. Then just like it successfully did with software it repeats similar steps in the evolution of its gaming device with X-Box one, X-Box one x, followed by the Adaptive Controller, Series X before purchasing Activision Blizzard cementing its ambitions in which gaming is evolving into Virtual Reality, and possibly beyond.
The Cloud
Cloud computing and the inclusion of Azure where the World required multiple access points for employees, enabling remote access working at ease during the pandemic. Now it offers the flexibility of accessing data in this transformative fast paced environment we all work and live in.
The array of possibilities with Microsoft that it has at its fingertips to monetise products like the Windows Phone, it has the largest social business networking platform in LinkedIn. We can even Skype someone anywhere in the world, their products are now ingrained into our business needs.
If you are interested there is so much more to discover about Microsoft so why not see by: clicking here to learn more about Microsoft and be taken directly to their own investor relations webpage.
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