Microsoft Corporation
MSFT20 yrs growthTechnology · Stock · quarterly payer
Forward Yield
0.73%
Annual Dividend
$3.64
Payout Ratio
20%
5-Yr Growth
10.2%
Ex-Date
Aug 20, 2026
Frequency
Quarterly
Summary
As of September 2026, Microsoft Corporation (MSFT) yields 0.73% ($3.64 per share annually), with a blended fair-value estimate of $400.14 — -22% downside, so it screens as overvalued. Dividend safety grade: A (97/100). 20 years of dividend growth.
Is MSFT a good dividend stock?
YesMicrosoft Corporation (MSFT) pays a quarterly dividend yielding 0.73% ($3.64/yr), with 20 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 20 consecutive years of dividend growth
- Never cut its dividend on record
- Comfortable payout ratio (20%)
- Strong 10.2% 5-yr dividend growth
- 82% total price return over 5 years
- Top-tier dividend safety score
Risks
- Single-stock concentration risk — diversify
Key Data
- Dividend Yield
- 0.73%
- Payout Ratio
- 20%
- Annual Dividend
- $3.64
- 5-Yr Avg Growth
- 10.2%
- Ex-Dividend Date
- Aug 20, 2026
- Years of Growth
- 20
- Frequency
- quarterly
- Beta
- 1.10
- Market Cap
- $3.8T
- P/E Ratio
- 28.4
- 5-Yr Total Return
- 82%
- 52-Week Range
- $349.20 – $553.72
- Dividend Safety
- A · 97/100
- Ever Cut?
- No
Frequently Asked Questions
MSFT Price — Last 12 Months
Daily close
Price Return
1 Year
-1%
3 Years
+63%
5 Years
+82%
52-Week Range
$349.20 – $553.72
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is MSFT worth?
Overvaluedmedium confidenceOur blended fair-value estimate for Microsoft Corporation is $400.14 per share, versus a market price of $513.53. That implies 22% of downside.
Fair Value
$400.14
Current Price
$513.53
Downside
-22%
Margin of Safety
-28%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 40.0% annual free-cash-flow growth. We model 20.0% — so the price already assumes faster growth than we think is likely.
Assumptions: 9.8% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $18.23 EPS, $3.64 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
MSFT Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 20, 2026 | — | $0.9100 | regular |
| May 21, 2026 | — | $0.9100 | regular |
| Feb 19, 2026 | — | $0.9100 | regular |
| Nov 20, 2025 | — | $0.9100 | regular |
| Aug 21, 2025 | — | $0.8300 | regular |
| May 15, 2025 | — | $0.8300 | regular |
| Feb 20, 2025 | — | $0.8300 | regular |
| Nov 21, 2024 | — | $0.8300 | regular |
| Aug 15, 2024 | — | $0.7500 | regular |
| May 15, 2024 | — | $0.7500 | regular |
| Feb 14, 2024 | — | $0.7500 | regular |
| Nov 15, 2023 | — | $0.7500 | regular |
| Aug 16, 2023 | — | $0.6800 | regular |
| May 17, 2023 | — | $0.6800 | regular |
Income Calculator
At $3.64 / yr per share
