Microsoft"s board of directors just announced a quarterly dividend of $0.91 per share. It will be payable on March 12, 2026, to anyone holding Microsoft stock on February 19, 2026, when the cutoff takes place. Microsoft"s stock price currently sits at $490 per share, so if you don"t own any yet, it"s going to be a bit pricey getting that $0.91, but you"re always able to sell the stock again after.
Of course, those considering buying just for the dividend alone also need to keep in mind that the price of the stock can move much more, and likely will. Currently, the price at $490 is quite a bit lower than its high of $555 earlier this year. While the stock doesn"t face much resistance, it is trending downwards, with support bands at around $450 and $410, so it is possible it could fall quite a bit.
According to data from TradingView, 52 analysts believe that the stock is undervalued and within one year could reach anywhere between $500 and $730. It is also classified as a Strong Buy, based on the analysis of 62 analysts. While these experts could be right, it is important to remember that much of Microsoft"s stock success depends on artificial intelligence.
In recent weeks and months, there have been concerns that AI is in a bubble. Should that bubble pop, Microsoft, along with the rest of Big Tech, will likely see stock prices tumble noticeably. It is not a given that this will happen or that it will happen soon, but the risk is always there.
According to data on Dividend History, the $0.91 being paid out by Microsoft to shareholders now is an increase of 9.6% over the one awarded in the year before, which stood at $0.83. Since 2021, it has steadily been climbing by around 10% per year from $0.62.
Interestingly, the company paused increases to its dividends back in 2009 after the financial crash. If there is any economic downturn on the horizon, then maybe this dividend increase will be the last one for a few years. If that downturn doesn"t happen, expect the dividend to increase by another 10% next year too.
As with any investment, make sure you thoroughly investigate what you are putting your money into. Stock prices go up and down, so you may get back less than you put in.