■ Announcement · August 31, 2026
Microsoft's Dividend Raise: History Points to $1.00 Quarterly
Microsoft has raised its dividend for 16 straight years, with increases consistently in the 9.6%-10.7% range. Based on this pattern, the next raise could bring the quarterly payment to about $1.00.
Consistent Dividend Growth
Microsoft (NASDAQ: MSFT) has increased its dividend every year for over a decade, with 16 consecutive annual raises, all announced in September. The most recent increase, declared on September 15, 2025, brought the quarterly payment from $0.83 to $0.91, a rise of just under 10%.
Over the last six years, the annual increases have ranged from 9.6% to 10.7%, and the longer-term trend is similar. The quarterly dividend has grown from $0.36 at the end of 2015 to $0.91 at the end of 2025, representing a compound annual growth rate of about 9.7%.
Projecting the Next Raise
Applying this historical band to the current payment of $0.91, the next quarterly dividend could land between $1.00 and $1.01. This would translate to an annual payout of about $4.00 per share, an increase of roughly 10%.
However, the calendar is a pattern, not a promise. Microsoft has not scheduled or confirmed any future increase, and the board could deviate from historical trends.
Financial Context
Microsoft's capital expenditures have surged, with $115.9 billion allocated to property and equipment in fiscal 2026, an 80% jump from the prior year, driven by AI data center construction. Despite a 34% rise in operating cash flow to $182.9 billion, free cash flow fell to about $67 billion, down from $72 billion a year earlier.
Earnings, however, are growing faster than the dividend. Fiscal 2026 revenue grew 18% to $331.8 billion, with Azure revenue crossing $100 billion and rising 41%. Net income reached $133.7 billion, up 31% year over year.
Currently, the dividend costs about $27 billion annually, representing roughly 15% of operating cash flow and about 20% of fiscal 2026 earnings per share of $17.95. A 10% increase would add approximately $2.7 billion to the annual cost, which remains manageable.
What it means for income investors
Microsoft's dividend history suggests a likely raise to about $1.00 per quarter in September, consistent with its recent pattern. The company's strong earnings growth and ample cash flow support the sustainability of the dividend, even amid heavy AI-related spending.
Reporting based on: The Motley Fool. Figures verified against market data where available.