Microsoft Goes Ex-Dividend Nov 19. Here’s What Backs the $0.98 Payout
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Shares of Microsoft (NASDAQ:MSFT | MSFT Price Prediction) go ex-dividend on November 19, 2026. If you own shares before that date, you collect $0.98 per share on December 10, 2026. That’s a 7.7% raise from the prior $0.91. It comes while Microsoft is spending on AI data centers faster than ever, and that tension shapes the whole dividend story.
A Thin Yield Sitting on a Massive Earnings Base
The yield is just 0.68%. The annualized forward payout of $3.92 equals about 23% of fiscal 2026 EPS of $17.28. The yield remains small because the stock has outrun the dividend: shares gained 909.76% over ten years. More recently, the stock is down 4.11% over the past month and slipped Friday on a widespread outage.
Earnings keep growing behind the payout. Fiscal Q1 2027 revenue rose 18.8% to $92.28 billion. Non-GAAP EPS of $4.89 beat the $4.72 consensus. Operating cash flow rose 28.73% to $58.0 billion. CEO Satya Nadella said:
“Based on the demand we see, the strength of our products, and the efficiency we are driving across the stack, I’ve never been more confident in the long-term returns for our investments.”
Capex Now Competes Directly With Shareholder Cash
Capital spending more than doubled to $39.37 billion, up from $19.39 billion. That left free cash flow at $18.6 billion. Microsoft returned $10.2 billion to shareholders, $4.379 billion of it through buybacks. That implies roughly $5.8 billion in dividends, or about 31% of the quarter’s free cash flow. Buybacks ran $7,415 million in fiscal Q2 2026. If cash gets tighter, buybacks are the first thing to give.
Spending will keep rising. Management expects Q2 capex over $50 billion and about $170 billion for the calendar year. CFO Amy Hood said:
“Given our strong business performance, we expect to continue to remain free cash flow positive in FY ’27.”
The balance sheet adds a buffer. Debt-to-equity is 0.29, and interest coverage is 50.88x. Commercial remaining performance obligations, meaning signed revenue not yet recorded, rose 73% to $677 billion.
Where Apple and Alphabet Land on Dividend Safety
Apple (NASDAQ:AAPL) pays $0.27 per quarter. That’s about 12% of fiscal 2026 EPS of $8.98. Its capex fell 28.9% to $9.04 billion, which leaves Apple’s operating cash flow free for capital returns.
Alphabet (NASDAQ:GOOGL) raised its dividend to $0.22. But its Q3 free cash flow came in at negative $9.07 billion after capex rose 114.4%, and it raised $28.7 billion through new debt. Microsoft stands between the two: it’s spending heavily and still producing free cash flow.
A Decade of Raises Shows the Pattern
The quarterly payout was $0.39 in late 2016. Reaching $0.98 works out to about 9.7% annual growth. Microsoft announces its raise each fall, and the higher payout starts with the late-year dividend. It went to $0.75 in 2023, $0.83 in 2024, $0.91 in 2025, and now $0.98.
Who This Dividend Actually Serves
For an income-focused retiree, a 0.68% yield produces too little cash to live on. For dividend-growth investors, Microsoft offers a low payout ratio, consistent high-single-digit raises, and $66.99 billion in fiscal 2026 free cash flow. The key thing to track is whether free cash flow stays positive as capex approaches $170 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
