Microsoft (NASDAQ: MSFT) simply gave buyers a motive to smile by cranking up its quarterly dividend payout by almost 11% in September. However this is not precisely a shock. Microsoft has been paying dividends since 2003 and has persistently upped these payouts for almost twenty years.
Granted, most buyers are inclined to concentrate on Microsoft’s spectacular progress story and its large bets on synthetic intelligence (AI) — and that is sensible. However you may nonetheless be inquisitive about simply how a lot you may earn in dividends in the event you personal this inventory.
With a present dividend yield of round 0.8%, Microsoft is much from being the highest-yielding possibility on the market. Nonetheless, it affords a gradual stream of earnings alongside its progress potential.
Your first $1000 in dividend earnings from Microsoft
When investing in dividend-paying belongings, a standard milestone to shoot for is incomes your first $1,000 in dividend earnings. Let’s run the numbers for Microsoft.
Microsoft just lately bumped its quarterly dividend from $0.75 per share to $0.83 per share. That comes out to $3.32 yearly. To earn $1,000 a yr in dividends, you’d have to personal about 302 shares. At Microsoft’s present share worth of round $417, you’d want to take a position about $126,000 to succeed in your aim.
Is it value it? Possibly not in the event you’re strictly chasing excessive yields. However in the event you’re searching for long-term progress potential and regular dividend hikes, Microsoft might be value contemplating. Its heavy investments in AI may strain earnings now, however they might drive main progress down the highway. Plus, with a market cap of over $3 trillion and a spot among the many “Magnificent Seven,” you’d personal a stake in one of many largest corporations on this planet.
Do your analysis and hearken to the earnings calls to get a way of the place Microsoft is headed. And if you wish to lock within the subsequent dividend payout, be certain to seize shares earlier than the ex-dividend date on Nov. 21 to safe your quarterly verify in December.
Do you have to make investments $1,000 in Microsoft proper now?
Before you purchase inventory in Microsoft, think about this:
The Motley Idiot Inventory Advisor analyst crew simply recognized what they consider are the 10 best stocks for buyers to purchase now… and Microsoft wasn’t considered one of them. The ten shares that made the lower may produce monster returns within the coming years.
Take into account when Nvidia made this record on April 15, 2005… in the event you invested $1,000 on the time of our advice, you’d have $845,679!*
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Charlene Rhinehart has positions in Microsoft. The Motley Idiot has positions in and recommends Microsoft. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
