Microsoft has announced an increase in the dividend per share for the shareholders. The company announced that its board of directors has declared a quarterly dividend of $0.68 per share, reflecting a 6-cent or 10% increase over the previous quarter’s dividend. The dividend is payable on December 8, 2022, to shareholders of record on November 17, 2022. The ex-dividend date will be November 16, 2022. Prior to this, Microsoft paid a quarterly dividend of $0.62 per share. The dividend was payable on September 8, 2022, to shareholders of record on August 18, 2022.
The majority of investors don’t consider Microsoft to be much of a dividend stock due to its low dividend yield of just around 1%. However, over time, the company has established a strong track record of increasing dividend payouts. After the latest increase in dividend payout, Microsoft will increase yearly dividend payments for the 20th consecutive year in 2022.
In addition, the company also announced the date for the 2022 Annual Shareholders Meeting, to be held on December 13, 2022. The shareholders as of October 12, 2022, the record date, will be entitled to vote for their shares. This year’s annual shareholders meeting will be held virtually and hosted by Satya Nadella, chairman and chief executive officer; Amy Hood, executive vice president, and chief financial officer; Brad Smith, vice chair and president; and John W. Thompson, Microsoft’s lead independent director.
After Apple, which has a market cap of nearly $2.5 trillion, Microsoft’s (MSFT) valuation is close to $1.8 trillion. Since January 2022, the MSFT share has been falling and is quoting around $242, nearly 28% down year-to-date.
Microsoft has been a big wealth creator for the shareholders since the company went public on March 13, 1986, at $21.00 per share. However, the last 1-year return has been lackluster and the MSFT share is at its 52-week low. As far as recent financials are concerned, the company’s revenue climbed 12% to $51.9 billion in the financial results for the quarter that ended on June 30, 2022. After a 3% increase, the diluted earnings per share were $2.23. The $25 billion in Microsoft Cloud sales is a 28% year-over-year increase.