Microsoft to pay 2026's first dividend on this date; Here's how much 100 MSFT shares will earn

Core Viewpoint - Microsoft is set to distribute its first dividend of 2026, reinforcing its commitment to shareholder returns with a declared quarterly cash dividend of $0.91 per share, payable on March 12, 2026 [1][4]. Dividend Details - The current share price of Microsoft is $470.28, resulting in a dividend yield of 0.77%, indicating its focus on growth rather than high yield [2][4]. - The forward payout ratio is 19.38%, suggesting that a small portion of earnings is returned to shareholders, allowing for significant reinvestment in core businesses like cloud infrastructure and AI [2][5]. - For investors holding 100 shares, the upcoming dividend will yield a cash payment of $91 for the quarter, translating to an annualized income of $364 if the dividend rate remains unchanged [5]. Dividend Growth and Stability - Microsoft has a strong track record of increasing its dividend for 24 consecutive years, positioning it among the most consistent dividend growers in the technology sector [6]. - The stock pays dividends quarterly, with historical data indicating an average price recovery of just over one day following dividend payouts, suggesting limited short-term selling pressure [6]. Market Context - Microsoft's dividend yield is below the broader technology sector average of 1.37%, but it may attract long-term investors looking for stability and predictable cash returns [7]. - The stock has experienced volatility as investors evaluate earnings and growth in key segments like Azure cloud services and AI, with analysts expecting strong earnings for the fiscal second quarter [8].