Microsoft (MSFT) is drawing renewed attention from dividend investors despite the tech sector’s general reluctance to offer substantial payouts. The company has consistently increased its dividend since it first paid one in 2003, currently offering $0.91 per share quarterly, which totals $3.64 annually. To generate $1,000 in dividends, an investor would need to hold 275 shares, translating to a hefty investment of around $105,000 at recent prices.
While Microsoft shares have recently declined due to heavy investments in artificial intelligence and underwhelming Azure growth, the company’s fundamentals remain strong. In its latest fiscal quarter, Microsoft reported a 17% year-over-year revenue increase to $81.3 billion, with its cloud segment showing a robust 26% growth. This decline may present a buying opportunity, especially for those seeking a blend of capital appreciation and passive income.
For market professionals, Microsoft’s solid revenue growth and historical dividend increases suggest that current price levels could be an attractive entry point for long-term investors looking to capitalize on both yield and potential recovery.
Source: fool.com