Microsoft Raises Quarterly Dividend to 98 Cents Per Share

Microsoft Corporation increased its quarterly dividend to 98 cents per share, representing a rise of approximately 8% from the previous 91 cents. Authorized by the board of directors on September 14 and announced on September 15, the new payout takes effect on December 10, 2026. This marks the 23rd consecutive year the company has increased its dividend.

The dividend hike occurs as the company aggressively expands its artificial intelligence infrastructure. Microsoft reported 41 billion dollars in capital expenditures for the fourth quarter of fiscal year 2026 and projects spending approximately 175 billion dollars throughout fiscal year 2027. These investments led to a 23% quarterly decline in free cash flow to 19.6 billion dollars, though the annual dividend cost of roughly 29 billion dollars remains less than half of the company's free cash flow.

Financial results for the quarter ending June 30 showed revenue grew 18% year-over-year to 90 billion dollars, driven by a 27% increase in cloud revenue to 59.3 billion dollars. Microsoft maintains a cash payout ratio of 39.5% and an AAA credit rating from S&P Global. The company's dividend program currently offers a higher per-share payout and average ten-year yield than its Magnificent Seven peers, including Apple, Alphabet, Meta Platforms, and Nvidia.