Microsoft's 0.74% Dividend Yield: A High-Level Overview
Understanding Microsoft's Dividend Policy
Microsoft Corporation (MSFT) offers a consistent dividend payout to its shareholders. The company's annual dividend currently stands at $3.00 per share, resulting in a forward yield of approximately 0.74%. This dividend is paid quarterly, providing investors with regular income from their investment.
Dividend Payment Schedule
Microsoft's dividend payment schedule adheres to the following pattern:
- Dividend Period: Every three months
- Announcement Date: Approximately 60 days before the ex-dividend date
- Ex-Dividend Date: The date on which the stock trades without the dividend entitlement
- Record Date: The date on which shareholders of record are eligible for the dividend
- Payable Date: The date on which the dividend is paid to shareholders
Stock Price and Dividend Yield
The dividend yield of a stock represents the percentage return an investor receives on their investment based on the dividend payout. It is calculated by dividing the annual dividend per share by the current stock price. Microsoft's current dividend yield of 0.74% indicates that investors are receiving a modest yield in return for holding the stock.
Dividend Coverage Ratio
The dividend coverage ratio measures a company's ability to cover its dividend payments with its earnings. Microsoft's dividend coverage ratio has historically been healthy, indicating that the company has sufficient earnings to support its dividend payments. A high dividend coverage ratio provides investors with confidence in the sustainability of the dividend.
Conclusion
Microsoft's dividend policy provides investors with a stable and reliable source of income. The company's consistent dividend payments and healthy dividend coverage ratio make it a potentially attractive investment for dividend-seeking investors. While the current dividend yield of 0.74% may be relatively modest, the potential for dividend growth and the overall financial strength of Microsoft make it a stock worth considering for long-term investors seeking dividend income.
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