Microsoft (NASDAQ: MSFT) is among the technology giants set to reward its investors with a dividend payment on September 11.

Notably, the company has been a consistent dividend payer, recording 23 consecutive years of increases. Its current forward dividend yield stands at 0.64%, based on an annual payout of $3.32 per share.

With a payout ratio of 21.40%, Microsoft still has ample room to reinvest profits into its expansive business while maintaining regular distributions. 

For the upcoming quarterly dividend, the firm will pay $0.83 per share, unchanged from the previous quarter. Investors eyeing this payout should note the ex-dividend date of August 21, 2025.

On the market front, Microsoft shares have shown some volatility in recent weeks, closing the latest session at $520, down 0.44% on the day. Year-to-date, however, the stock remains up 24%.

MSFT stock fundamentals 

Despite this volatility, it’s worth noting that Microsoft stock is backed by strong fundamentals, especially from a financial perspective. 

For instance, in Q4 FY2025, revenue rose 18% year-over-year to $76.4 billion, while net income surged 24% to $27.2 billion. Earnings per share also climbed 24% to $3.65, beating estimates. 

Among its products, Cloud remains the growth engine, with Intelligent Cloud revenue up 26% to $29.9 billion and Azure jumping 39%.

For the full year, Microsoft reported $281.7 billion in revenue and $101.8 billion in net income, a 16% increase. The company projects double-digit growth to continue in FY2026, with over $30 billion in Q1 capex earmarked for scaling AI infrastructure.

Meanwhile, Wall Street sentiment remains bullish, with Citi setting a Street-high target of $680, Jefferies at $675, and UBS at $650.

Featured image via Shutterstock