Microsoft (NASDAQ: MSFT) shareholders are set to receive another dividend payment next month, following the technology giant’s latest quarterly payout increase.
Microsoft declared a quarterly dividend of $0.98 per share, representing a 7.7% increase from the previous payment of $0.91.
The dividend is scheduled for December 10, 2026, with November 19 set as both the ex-dividend date and record date.
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MSFT dividends for one year
For investors holding 100 Microsoft shares, the upcoming distribution translates into a gross payment of $98.
An investor maintaining the same position across four quarterly payments would collect $392 annually, assuming the dividend remains unchanged. The increase also extends Microsoft’s dividend growth streak to 25 consecutive years.
Despite the increase, Microsoft’s dividend yield remains modest at 0.75%, based on its October 30 share price of $521.91 and annualized dividend of $3.92 per share.
Its forward payout ratio stands at 19.59%, meaning the company distributes a relatively small portion of its earnings as dividends while retaining most profits for operations, investment and growth.
Microsoft stock fundamentals
Microsoft’s dividend announcement comes amid continued growth in its cloud and artificial intelligence businesses.
In its first-quarter fiscal 2027 results, ended September 30, the company reported revenue of $92.3 billion, up 19% year over year. Operating income rose 21% to $45.9 billion, while net income and diluted earnings per share increased 32% to $36.6 billion and $4.92, respectively.
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Microsoft Cloud revenue climbed 30% to $63.9 billion, while Azure revenue surged 48%, reflecting strong demand for its cloud and AI services.
Commercial remaining performance obligations also jumped 73% to $677 billion, providing visibility into future revenue.
However, expansion comes with rising infrastructure costs. To this end, the technology company spent $39.4 billion on property and equipment during the quarter, more than double the $19.4 billion recorded a year earlier.
Investors will be watching whether future revenue and profitability justify the increased spending on AI and cloud infrastructure.
Featured image via Shutterstock
