Microsoft (MSFT, Financial) has announced a quarterly dividend. It will pay a shareholder dividend of 39 cents with an ex-dividend date of Feb. 14.
Microsoft has paid a quarterly dividend for over 10 years with its last dividend increase on Sept. 20. Prior to Sept. 20, the quarterly dividend payout was 36 cents per share.
With the newly announced dividend, the company has a forward dividend yield of 2.48% as of Dec. 14. The company has been increasing its dividend in recent years with a three-year annual dividend growth rate of 16.02%. Its dividend yield is among the top 10 in the Dow Jones Industrial Average. In the Dow Jones technology sector, it has the fourth-highest forward dividend yield.
The company’s stock price has been increasing in 2016. With a trading price of $63.06, it has a year to date gain of 13.64%. Currently in its second quarter, Microsoft will release its next earnings report on Jan. 26, 2017.
On Oct. 20, it reported its first quarter earnings for 2016. Revenue was $22.03 billion, an increase of 3% from the comparable quarter. Earnings were 76 cents, an increase from 67 cents.
First quarter revenue for the company was evenly distributed between its three main business segments. Productivity and business processes generated 33% of revenue, intelligent cloud reported 31% of revenue and personal computing reported 45% of revenue. Earnings were primarily generated from productivity and business processes with 60% of net income at $3.12 billion.
The company continues to be a leader in global technology initiatives. In April it announced new blockchain capabilities on Microsoft Azure. It is also planning new Cortana integrations for internet of things devices.
For the second quarter, analysts are expecting 1% comparable quarter revenue growth and an increase in quarterly earnings to 86 cents from 78 cents. The high analyst target for the stock is currently $72.
Disclosure: I do not directly own any shares of Microsoft.
Start a free 7-day trial of Premium Membership to GuruFocus.
