Microsoft may not offer the biggest dividend, but its impressive dividend streak is worth noting.
Microsoft (MSFT 0.35%) increased its quarterly dividend by nearly 11% in September, giving investors a reason to smile. However, this is not necessarily surprising. Microsoft has been paying a dividend since 2003 and has consistently increased its dividend for almost two decades.
Indeed, most investors tend to focus on Microsoft’s impressive growth story and big bet on artificial intelligence (AI), and rightly so. However, you may still be wondering how much dividends you will receive by owning this stock.
With a current dividend yield of about 0.8%, Microsoft is far from the highest-yielding option. Still, it provides a steady income with growth potential.
First $1,000 of dividend income from Microsoft
When investing in dividend-paying assets, earning your first $1,000 in dividend income is a common milestone to aim for. Let’s crunch the numbers for Microsoft.
Microsoft recently raised its quarterly dividend from $0.75 to $0.83 per share. This works out to $3.32 per year. To earn $1,000 in annual dividends, you would need to own approximately 302 shares. Microsoft’s current stock price is about $417, so you would need to invest about $126,000 to reach your goal.
Is it worth it? Maybe not if you’re strictly chasing high yields. But if you’re looking for long-term growth potential and steady dividend increases, Microsoft may be worth considering. Heavy investments in AI may weigh on profits now, but could fuel significant growth in the future. Additionally, with a market capitalization of over $3 trillion, being selected as a member of the “Magnificent Seven” means you will own a stake in one of the world’s largest companies.
Do your research and listen to the earnings call to find out where Microsoft is headed. And if you want to be sure you’ll receive the next dividend, buy the stock before the November 21 ex-dividend date to secure your December quarterly check.
Charlene Rhinehart holds a position at Microsoft. The Motley Fool has a role in and recommends Microsoft. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
