Microsoft Dividend Expected to Hit Nearly $1 Share Amid Earnings Growth

Microsoft's upcoming dividend announcement is expected to see its quarterly payout reach nearly $1 per share, continuing its 16-year streak of annual increases. This pattern has been remarkably consistent over the past six years, with raises ranging from 9.6% to 10.7%, pointing towards a 10% increase this year.

Applying this range to the current quarterly rate of $0.91 yields a new payment between approximately $1.00 and $1.01 per share, or about $4.00 annually.

The company's spending spree on artificial intelligence infrastructure has raised concerns about its free cash flow, but Microsoft's earnings growth is expanding faster than the payout itself. Fiscal 2026 revenue grew 18% to $331.8 billion, with Azure revenue crossing $100 billion for the first time while climbing 41%, and net income of $133.7 billion was 31% higher than the prior year.

Microsoft's cloud business has become a central driver of investor sentiment, with Azure posting 43% year-over-year revenue growth in the fiscal fourth quarter. The company holds roughly 21% of the cloud computing market, making it one of the largest providers globally.