# Microsoft's Dividend Yield Looks Small

> Microsoft's $26.445 billion annual dividend dwarfs its 0.67% yield.
- Title: Microsoft's Dividend Yield Looks Small · 24/7 Wall St.
- Summary: Microsoft's $26.445 billion annual dividend dwarfs its 0.67% yield. microsoft, dividend, yield · reported by 24/7 Wall St..
- Keywords: microsoft, dividend, yield, free cash flow, capital expenditure, azure, cloud services, Microsoft's, Looks, Small, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/27/microsofts-dividend-yield-looks-small-the-check-it-writes-every-year-doesnt
- Author: Chris Lange
- Published: 2026-10-27T17:17:50+00:00
- Read time: 1 min
- Topics: microsoft, dividend, yield, free cash flow, capital expenditure, azure, cloud services
## Microsoft's Dividend Yield
Microsoft's dividend yield barely registers at 0.67% for income investors.
## Total Dividend Check
Microsoft paid $26.445 billion in dividends for fiscal 2026 ending June 30.
## Dividend Growth
Annual dividend grew from $11.006 billion in fiscal 2016 to $26.445 billion in fiscal 2026.
## Per-Share Dividend
Quarterly dividend went from $0.36 in 2016 to $0.98 today, a 172% increase.
## Dividend Coverage
Dividends used 39.5% of Microsoft's $66.987 billion free cash flow in fiscal 2026.
## AI Capital Spending
Capital spending rose 79.62% to $115.948 billion as Microsoft built AI and cloud capacity.
## What to Watch Next
Microsoft's next earnings report will compare first-quarter capex and free cash flow to the $29.1 billion annual dividend run rate.
## Key takeaway

Microsoft's $26.445 billion annual dividend shows greater reliability than its 0.67% yield for income investors.