Microsoft Corporation (MSFT) will raise its quarterly dividend by 9.8 percent to 56 cents per share in 2020. This comes after a 10.9 percent dividend hike to $0.51 per share announced in 2019 by the technology company. This will mark the 18th consecutive year of annual dividend increases for Microsoft.
The new dividend is payable on December 10, 2020, to shareholders of record on November 19, 2020. The ex-dividend date will be November 18, 2020.. A new annualized dividend rate of $2.24 per share yields 1.1% at at stock price of $208.78.
Microsoft stock has gained 32.4 percent year-to-date, resulting in a current market cap of $1.55 trillion for the technology company. Our own calculations indicate that Microsoft will now pay an estimated $16.98 billion in dividends annually to its shareholders. This makes the company the biggest dividend payer in the United States, with both AT&T and ExxonMobil paying less than $15 billion in dividends annually. Apple (AAPL) now pays an estimated $14.2 billion annually in dividends, with big buybacks reducing the total dividend payment despite annual increases by the company.
| Microsoft Corporation (MSFT) | |
| Stock price (Sept 15) | $208.78 |
| YTD Return | +32.4% |
| 2019 Return | +55.3% |
| Market Cap | $1.55 trillion |
| Annual dividend | $16.98 billion |
| Ex-dividend date | 18-Nov |
| Dividend 10 yr CAGR | +14.6% |
| www.dividendhike.com | |
For Microsoft the average annual dividend hike in the last five years now is 9.2 percent. Last year the dividend was hiked by double digits for the first time since 2015, when Microsoft announced a 16.1 percent dividend increase. With 18 consecutive years of dividend increases the company now has one of the best dividend track records in the technology sector.
Microsoft Corporation is a technology company. The company develops, licenses, and supports software products, services and devices. The company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. Microsoft also manufactures devices, including PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.The company offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content. Microsoft also provides solution support and consulting services and delivers relevant online advertising to a global audience. Microsoft was founded in 1975 and has paid a dividend every year since 2003.
2023