Microsoft’s high valuation prevents it from receiving a buy recommendation from Sure Dividend at this time, but investors primarily concerned with long-term income generation are likely to be impressed with Microsoft’s dividend.Due to low variable costs, the impact of operating leverage will allow Microsoft to maintain an earnings growth rate that is higher than the revenue growth rate for the foreseeable future. If this continues at this rate, the payout ratio could easily rise to over 90% or even over 100% by 2029. A virtual meeting format provides a consistent experience to all shareholders regardless of location, as well as the opportunity for global, multilingual and interactive access to a dialogue with its senior executives and directors.
This is a healthy payout ratio which leaves plenty of room for continued dividend increases. REDMOND, Wash. — March 9, 2020 — Microsoft Corp. on Monday announced that its board of directors declared a quarterly dividend of $0.51 per share. The dividend payout ratio has never risen substantially above 50%, and the fact that Microsoft owns one of the strongest balance sheets in the world means that the dividend is very safe.Thanks for reading this article. But in this scenario, the high-yield stock would have a yield on cost of 6.1% in 10 years—just barely higher than Microsoft’s yield on cost. Returns as of 07/30/2020.Since 2004, Microsoft has paid dividends to investors every year. Shareholders at the close of business on Oct. 8, 2019, the record date, will be entitled to vote their shares.The board of directors also approved a new share repurchase program authorizing up to $40 billion in share repurchases. Annual shareholders meeting set for Dec. 4, 2019 REDMOND, Wash. — Sept. 18, 2019 — Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.51 per share, reflecting a 5 cent or 11% increase over the previous quarter’s dividend. Azure resulted in Microsoft’s Intelligent Cloud business leading its growth last quarter.Therefore, from the perspective of total returns, Microsoft gets a hold recommendation from Sure Dividend. The downside of high-yield stocks is that they often have low dividend growth over the years, or no dividend growth at all.Microsoft’s valuation bottomed out in 2011 with a P/E ratio slightly under 10. The ex-dividend date will be May 20, 2020. These amounts represented 13% of revenue those fiscal years.The only possible negatives to be said about Microsoft stock would be its valuation, and its vulnerability to recessions.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1.
That means Microsoft is likely to pay two more $0.51 quarterly dividends before it gives the payout another boost. Double-digit dividend increases each year are realistic and attainable, provided the global economy stays out of a deep and lengthy recession. Dividend growth investors focus less on current dividend yields, and focus more on stocks that can increase their dividends at a high rate each year.
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