Microsoft’s Dividend Growth Leads the Way
Microsoft has established a remarkable track record of dividend increases, having raised its dividend by 600% since 2010, with current quarterly payouts of $6.6 billion. This growth makes Microsoft a standout among the “Magnificent Seven” tech stocks, which have been pivotal in the $15.7 trillion artificial intelligence revolution. The company’s dividend yield stands at 0.76%, reflecting its strong earnings growth of 12.5% year-over-year in the last quarter.
In contrast, Apple, another major player in the tech sector, has seen its dividends grow by 176% since resuming payouts in 2012; however, Microsoft remains the industry’s leader in dividend growth and stability. With a payout ratio of just 23.6%, Microsoft’s dividend is deemed highly sustainable. The company is also executing a substantial $60 billion share buyback program, which may further bolster its dividend safety and appeal for income investors.
As of now, no other company from the Magnificent Seven has achieved the title of Dividend Champion, but experts predict that Microsoft’s consistent dividend increases position it favorably for this recognition over the next decade.
