Microsoft Dividend: A High-Yield Opportunity
Understanding Microsoft's Dividend
Microsoft Corporation (MSFT) is a global technology giant that has consistently provided investors with a steady stream of dividends. The company has an annual dividend of $3.00 per share, resulting in a forward yield of approximately 0.74%. Microsoft pays its dividend quarterly, with the next dividend payment scheduled for March 9, 2023.
Dividend Payment Schedule
Microsoft's dividend payment schedule is as follows: | Dividend Period | Amount | Announcement Date | Ex-Dividend Date | Record Date | Payable Date | |---|---|---|---|---|---| | January 2023 | $0.75 | December 7, 2022 | January 10, 2023 | January 12, 2023 | January 26, 2023 | | April 2023 | $0.75 | March 9, 2023 | March 14, 2023 | March 16, 2023 | April 11, 2023 | | July 2023 | $0.75 | June 8, 2023 | June 12, 2023 | June 14, 2023 | July 12, 2023 | | October 2023 | $0.75 | September 14, 2023 | September 18, 2023 | September 20, 2023 | October 13, 2023 |
Dividend Yield and Cap Rate
Microsoft's forward dividend yield is calculated by dividing the annual dividend of $3.00 by the current stock price, which fluctuates around $400. At the time of writing, the yield is approximately 0.74%. Investors can also calculate the dividend cap rate, which is the ratio of the annual dividend to the property value. In the case of Microsoft, the cap rate would be approximately 3.00% / $400 = 0.75%.
Dividend History and Increase
Microsoft has a long history of paying and increasing its dividend. The company has increased its dividend for 11 consecutive years. In 2023, Microsoft announced a 10% increase in its quarterly dividend, bringing it to $0.75 per share. This indicates that Microsoft is committed to returning value to its shareholders.
Conclusion
Microsoft's dividend is a significant source of passive income for investors. With a high-yield and a consistent history of increases, Microsoft's dividend is an attractive option for those seeking dividend-generating stocks. The company's strong financial performance and commitment to shareholder value make it a reliable dividend payer in both good and challenging economic conditions.
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