Microsoft’s Dividend Growth Highlights
Microsoft has increased its dividend every year since 2010, resulting in a remarkable 600% growth over 15 years. As of January 2025, investors who purchased shares back in 2010 are enjoying an 11.8% yield on cost, translating to $1,180 for every $10,000 invested. In contrast, a similar investment in 10-year Treasuries would yield just $414.
In fiscal year 2025, Microsoft’s net operating cash flow reached $136.16 billion, up 466% from $24.07 billion in 2010. The company has also aggressively bought back 1.5 billion shares since 2010, reducing outstanding shares from 8.9 billion to 7.43 billion, maintaining a consistent percentage of cash flow devoted to dividends. With a current dividend yield of 0.77%, projections suggest this could rise to 5.39% if Microsoft continues its historical average growth rate.
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