Microsoft's Dividend Yield Looks Small

Microsoft's $26.445 billion annual dividend dwarfs its 0.67% yield.

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Oct 27, 2026

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Microsoft's Dividend Yield Looks Small

Microsoft's $26.445 billion annual dividend dwarfs its 0.67% yield.

In brief

Microsoft's $26.445 billion annual dividend dwarfs its 0.67% yield. Microsoft's $26.445 billion annual dividend shows greater reliability than its 0.67% yield for income investors. Originally reported by 24/7 Wall St..

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

MSFT price target

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

MSFT earnings explorer

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.

The big picture

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

Read the original on 24/7 Wall St.

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