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Microsoft Maintains an Increasing Dividend Payment Trend

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Dividend payment history

Microsoft’s (MSFT) uninterrupted dividend payment strategy on a quarterly basis has enhanced shareholder wealth through regular dividend payments. The company has maintained a history of raising its dividend every year.

In fiscal 1Q18,[1. fiscal 1Q18 ended September 30, 2017] Microsoft hiked its quarterly dividend by 7.7% to $0.42 per share. In the last four years, the company paid $50.4 billion, with an average dividend of ~$10.1 billion each year.

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In the chart above, we can see the increasing dividend payment trend in the last five years for Microsoft. In fiscal 2Q18,[2. fiscal 2Q18 ended December 31, 2017] Microsoft paid nearly $3.2 billion in dividends compared with $3.0 billion in fiscal 2Q17. At the end of fiscal 1H18, the company paid $6.5 billion in dividends compared with $6.0 billion in fiscal 1H17.

Dividend yields and peer comparisons

Microsoft’s current dividend yield is ~1.7%. Among its peers, International Business Machines (IBM) and Oracle (ORCL) have dividend yields of ~4.0% and ~1.6%, respectively. IBM’s quarterly dividend is $1.50, and Oracle’s quarterly dividend is $0.19.

 

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