Key Points
- Microsoft has a 20-year streak of annual dividend increases.
- Meta’s new dividend, backed by strong cash flow, shows significant long-term growth potential.
- Microsoft is currently considered the superior dividend stock.
Microsoft (NASDAQ: MSFT) has maintained a 20-year track record of increasing annual dividends, currently paying $0.83 per share quarterly, which amounts to $3.32 annually. This represents a 10% increase from the previous year and utilizes only 24% of its earnings. In fiscal 2025, Microsoft reported $281.7 billion in revenue, up 15% year-over-year, returning over $37 billion to shareholders through dividends and buybacks.
Meta Platforms (NASDAQ: META), which introduced its dividend last year, recently raised it by 5% to $2.10 per share annually, consuming about 7% of earnings. The company reported a 22% year-over-year revenue increase in Q2, with operating expenses expected to rise 77% due to investments in AI. Although Meta shows future potential, Microsoft’s established dividend history and performance make it the safer option for income-focused investors.
