Microsoft’s Ongoing Dividend Growth: Insights on Potential Increases This Year

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**Microsoft Declares Quarterly Dividend of $0.91**

Microsoft (NASDAQ: MSFT) has announced a quarterly dividend of $0.91 per share, which will be paid to shareholders on September 10. This amount reflects a consistent pattern of dividend payments, with the company having raised its dividend every year for the past 16 years, typically in September. In its previous increase announced on September 15, 2025, Microsoft raised the dividend from $0.83 to $0.91, marking a nearly 10% increase.

The company has allocated $115.9 billion for capital expenditures in fiscal 2026, an 80% increase compared to the previous year, primarily for building AI data center capacity. Despite this spending surge, Microsoft’s operating cash flow rose by 34% to $182.9 billion, resulting in approximately $67 billion in free cash flow after capital expenditures. This translates to about 15% of its operating cash flow being allocated to dividends, maintaining a payout ratio of around 20% of its earnings, which stood at $17.95 per share in fiscal 2026.

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