Dividend Growth Stock Overview Microsoft Corporation from harvestingdividends.com
Introduction to Microsoft Dividend History
Microsoft Corporation is one of the largest technology companies in the world, and it has been paying dividends since 2003. Since then, it has grown its dividend steadily and has become one of the top dividend stocks in the world. Microsoft has been paying a quarterly dividend since 2003, and today it pays a dividend of $0.51 per share every quarter. In this article, we will explore Microsoft's dividend history, including its dividend growth rate, dividend yield, and payout ratio.
Microsoft Quarterly Dividend History
Microsoft has been paying a quarterly dividend since 2003, and its dividend has grown significantly over the years. In 2003, the company's quarterly dividend was just $0.08 per share, but today it stands at $0.51 per share. This is an increase of more than 500% over the past 16 years. Over the years, Microsoft has consistently increased its dividend, and in 2020, the company increased its dividend by 10%. This is the highest dividend increase since 2017, when it increased its dividend by 11%.
Microsoft Dividend Growth Rate
Microsoft's dividend growth rate has been impressive over the past 16 years. The company has consistently increased its dividend, and its dividend growth rate has averaged around 10% over the past decade. In 2020, the company increased its dividend by 10%, which is the highest dividend increase since 2017. The company's dividend growth rate has been so impressive that it has been able to consistently outpace inflation since it started paying dividends.
Microsoft Dividend Yield
The dividend yield is an important measure of a stock's value and it measures the amount of income investors can expect to receive from their investments. Microsoft's dividend yield has been trending up over the years and today it stands at 1.91%. This is higher than the average dividend yield of the S&P 500, which stands at 1.42%. It is also higher than the average dividend yield of the Dow Jones Industrial Average, which stands at 2.04%.
Microsoft Payout Ratio
The payout ratio is another important measure of a stock's value and it measures the percentage of earnings that are paid out as dividends. Microsoft's payout ratio has been trending up over the years and today it stands at around 33%. This is lower than the average payout ratio of the S&P 500, which stands at 44%. It is also lower than the average payout ratio of the Dow Jones Industrial Average, which stands at 40%. This indicates that Microsoft is able to pay out a higher portion of its earnings as dividends than the average company in the index.
Conclusion
Microsoft has been paying a quarterly dividend since 2003, and its dividend has grown significantly over the years. The company's dividend growth rate has averaged around 10% over the past decade, and its dividend yield stands at 1.91%. The company's payout ratio stands at 33%, which is lower than the average payout ratio of the S&P 500 and the Dow Jones Industrial Average. Microsoft is one of the top dividend stocks in the world, and it is a great choice for investors who are looking for a reliable and growing source of income.