Key Facts on Microsoft’s Dividend Strategy
Microsoft (NASDAQ: MSFT) spent a total of $24.08 billion on dividends and $18.42 billion on stock buybacks in fiscal 2025, which ended June 30. The company announced a 10% dividend increase this September, marking its 16th consecutive year of raising dividends, despite a current yield of only 0.7%. Microsoft leads the S&P 500 in total dividend expenditure, surpassing major competitors like Apple and JPMorgan Chase.
Microsoft’s strong financial position is reflected in its ability to invest in artificial intelligence while maintaining a healthy free cash flow. The company’s cash from operations is consistently rising, even as its capital expenditures increase, indicating balanced growth. Over the past decade, Microsoft has raised its dividend by over 250%, making it a potentially attractive investment for long-term shareholders.
