Microsoft's (MSFT) dividend yield is only about 0.67%, yet the total cash it pays out each year ranks among the largest dividend payments in corporate history. In fiscal 2026 (ended June 30), Microsoft paid $26.445 billion in dividends, about 9.8% more than the prior year, and the board has since raised the quarterly payout to $0.98 per share. Dividends used roughly 39.5% of the company's $66.987 billion in free cash flow and about 14.5% of its $182.935 billion in operating cash flow, even as capital spending rose 79.62% to $115.948 billion to build AI and cloud capacity. Annual dividend payments grew about 140% from $11.006 billion in fiscal 2016. The article argues that the payout size and free cash flow coverage say more about the reliability of the income than the headline yield does.
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Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/26/2026 | 532.60 |
| Change that session | +1.54% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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