Microsoft's Dividend Streak Set to Continue with Expected 10% Increase

Microsoft's dividend has been on a remarkable streak for over a decade. The company has raised its quarterly dividend every year since 2015, and this September is expected to be no exception.

The last six annual increases have all fallen between 9% and 11%, with the most recent increase in September 2025 seeing the quarterly payment rise from $0.83 to $0.91, a gain of just under 10%. This year's increase is likely to follow a similar pattern, with analysts predicting an increase of around 10%, bringing the quarterly dividend to approximately $1.00.

Microsoft's payout ratio is about 20% of earnings, and its net income has been growing at a rate of 31% over the past year. The company's free cash flow remains strong, covering the dividend more than twice over. While the surge in AI spending may put some pressure on Microsoft's finances, it seems unlikely to impact the dividend anytime soon.