Microsoft
Microsoft Dividend
Microsoft pays quarterly dividends in December, March, June and September. This dividend has been paid and increased for 22 consecutive years and currently yields 0.96%. (22.06.2026)
Total dividends for 2025 were $3.32 per share, or $0.83 per quarter.
A recently announced quarter four dividend for 2026 is $0.91. Annually, this equates to $3.64 per share. This latest dividend is due to be paid on 10th September 2026.
For research purposes, here are the last ten years’ annualised dividends:
2026 $3.64
2025 $3.32
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
While Microsoft’s headquarters are in the US, its global reach means its revenues aren’t solely dependent on the US market. This global presence makes Microsoft a great diversified equity as it is not reliant on any one market or region.
One reason for including Microsoft stock in our portfolio is its growing dividend. With annual increases of around 10%, it’s a stock we wish we’d invested in sooner.
Since the portfolio is focused on retirement planning and financial independence, over time Microsoft Corporation’s shareholder distributions should significantly enhance dividend income. This stock is currently classified as a dividend growth stock.
We added MSFT during a market pullback, avoiding the temptation to invest when the technology sector was at all-time highs. While we may be late to the game in holding quality technology stocks, our caution stems from extremely high stock valuations.
We intend to purchase Microsoft stock in full shares, not fractions, with the goal of increasing the holdings in the near future or when we perceive a reasonable price. The aim is to build a substantial holding over time.
While the dividend contribution may seem small now, knowing that the stock grows its annual dividend above inflation is reassuring.
View how Microsoft’s income contributes to all the 2025 dividends by clicking here.
A full breakdown of income can be viewed in the file below:
Microsoft average five year share price
At the lowest point the share price over the past 5 years was $135.00 on the 22/03/2020 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 our own personal experience and using our preferred metrics to value equities at the time of updating this page 22/09/2026:
We would be looking to purchase further shares between the price parameters of $375 to $400 US dollars.
Great companies often have great share prices, and with a business and market capitalisation in the $3 trillion range, it can be difficult to determine if we’re in a tech bubble, as history suggests.
Microsoft has a well-established moat, a strong position that differentiates it from competitors. While current discussions revolve around the hype surrounding AI and valuations, we believe this established moat offers an easy win for monetising AI through its existing software, which is already embedded in businesses worldwide.
Concerns about the initial AI capital investment might be costly but Microsoft has the resources to support its infrastructure buildout. Businesses can boost productivity reduce costs and leverage AI with few alternatives, especially software companies heavily involved in daily management systems beyond Microsoft’s offerings.
In our view, Microsoft demonstrates how AI can drive industry advancement while simultaneously boosting both bottom and top lines.
MSFT
About the company:
Microsoft Corporation (NASDAQ:MSFT) is an American technology company renowned for its software and Windows services. Its headquarters are situated in Redmond, Washington.
In 1981, the first IBM computers were introduced with the MS-DOS operating system. Eight years later, in 1989, the first Office suite was launched from Microsoft, followed by its first Windows 3.0 application. Over the years, with successive upgrades and improved versions of Windows, Microsoft Office and its associated Word, Excel, Access and PowerPoint packages have become the standard for most businesses worldwide.
Microsoft quickly established itself as the leading software company, transforming the industrial world from pen and paper to the digital landscape we inhabit today. I vividly recall using an old ‘overhead projector’ with transparent viewing foils back in the day for presentations. Thanks to Microsoft, PowerPoint revolutionised the way we present information.
Instead of relying on traditional books for calculations, Excel emerged, linking sheets and data. More importantly, it introduced formulas that allowed for quick and effective management of pricing and costs. Global corporations embraced Microsoft’s technologies, driving their digital evolution.
Gaming
In 2001, just before the millennium, Microsoft ventured into the gaming industry with the launch of the X-Box. Similar to its success in software, Microsoft continued to innovate with its gaming devices, introducing the X-Box One, X-Box One X, and the Adaptive Controller. The Series X followed, and Microsoft further solidified its gaming ambitions by acquiring Activision Blizzard. This acquisition paved the way for the evolution of gaming into Virtual Reality and beyond.
The Cloud
Cloud computing and Azure emerged as one of the essential solutions for businesses requiring multiple access points for employees. During the pandemic, Azure provided the flexibility to work remotely, ensuring seamless access to data in the fast-paced digital environment we now live.
Microsoft offers a wealth of opportunities for monetising products like the Windows Phone. It boasts the largest social business networking platform, LinkedIn, and enables global Skype calls. Their products are now integral to our business needs.
If you are interested there is so much more to discover about Microsoft, so why not visit their website by: clicking here to learn more about Microsoft you will be taken directly to their own investor relations webpage.
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