Microsoft dividend
Microsoft's dividend begins at $3.85 per share in the forecast, then grows from $4.23 to $4.94 in the base case. Real free cash flow was $54,582 million against $26,445 million of dividends paid, so the cash covered the dividend.
How much does Microsoft pay per share?
The dividend begins at $3.85 per share in every case because the forecast includes the declared $0.91 payment and three quarters at $0.98. The base then grows from $4.23 to $4.94, versus $4.16 to $4.67 in the bear and $4.31 to $5.22 in the bull. The base follows the latest 8% increase, supported by $54,582 million of real free cash flow against $26,445 million of dividends paid.
| Year to Jun 2026 | Year to Jun 2025 | Year to Jun 2024 | Year to Jun 2023 | Year to Jun 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 17.95 | 13.64 | 11.80 | 9.68 | 9.65 |
| Free cash flow per share | 8.99 | 9.59 | 9.92 | 7.96 | 8.64 |
| Dividend per share | 3.64 | 3.32 | 3.00 | 2.72 | 2.48 |
Does Microsoft cover its dividend with cash?
Shareholders still received substantial cash. Over the five years, dividends totalled $110,233 million and repurchases totalled $112,886 million. But a buyback benefits each remaining owner only if Microsoft retires more shares than it issues to employees. Microsoft’s share count ended fiscal 2025 at 7,434 million, unchanged from where it began. Buying back shares can also destroy value if the company pays too much.
| Year to Jun 2026 | Year to Jun 2025 | Year to Jun 2024 | Year to Jun 2023 | Year to Jun 2022 | |
|---|---|---|---|---|---|
| Real free cash flow (after stock pay) | 54,582 | 59,637 | 63,337 | 49,864 | 57,647 |
| Dividends paid | 26,445 | 24,082 | 21,771 | 19,800 | 18,135 |
| Shares bought back | 22,271 | 18,420 | 17,254 | 22,245 | 32,696 |
| New shares sold | 2,009 | 2,056 | 2,002 | 1,866 | 1,841 |
| Returned to shareholders, share of real free cash flow | 89.3% | 71.3% | 61.6% | 84.3% | 88.2% |
What could change Microsoft's dividend?
| FY2027 | FY2028 | FY2029 | FY2030 | |
|---|---|---|---|---|
| Revenue growth | 17.5 % (14.0 % / 19.0 %) | 15.5 % (12.0 % / 19.0 %) | 14.0 % (10.0 % / 18.0 %) | 13.0 % (9.0 % / 17.0 %) |
| Buybacks | 18,000 (14,000 / 21,000) | 19,000 (14,000 / 23,000) | 20,000 (15,000 / 25,000) | 21,000 (16,000 / 27,000) |
| Dividend per share | 3.85 (3.85 / 3.85) | 4.23 (4.16 / 4.31) | 4.57 (4.40 / 4.74) | 4.94 (4.67 / 5.22) |
What is Microsoft's dividend yield against its share price?
Revenue growth reached 17.8% in FY2026 while operating margin was 46.8%, but investment pushed Microsoft from net cash in FY2025 to net debt in FY2026. Earnings rose while after-stock-pay cash per share fell from FY2024 to FY2026. Microsoft’s trailing P/E was 29.1x against a 1.7% free cash flow yield; dividend yield was 0.8% and buybacks were 0.6% of market value.