Microsoft (XSWX:MSFT) 3-Year Dividend Growth Rate: 10.20% (As of Jun. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XSWX:MSFT Microsoft Corp XSWX:MSFT
100 GF Score
Price CHF401.90
GF Value CHF463.41
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Microsoft 3-Year Dividend Growth Rate?

Microsoft XSWX:MSFT 100 3-Year Dividend Growth Rate is 10.20% as of Jun. 2026, which is 6% below its 10-year median of 10.90. GuruFocus rates XSWX:MSFT with a GF Score™ of 100/100 and a GF Value™ of CHF463.41 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 641 Software companies, Microsoft ranks worse than 55.23% on this metric.

Microsoft's Dividends per Share for the three months ended in Jun. 2026 was CHF0.73.

The historical rank and industry rank for Microsoft's 3-Year Dividend Growth Rate or its related term are showing as below:

XSWX:MSFT' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 9   Med: 10.9   Max: 62
Current: 10.2

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Microsoft was 62.00% per year. The lowest was 9.00% per year. And the median was 10.90% per year.

XSWX:MSFT's 3-Year Dividend Growth Rate is ranked worse than
55.23% of 641 companies
in the Software industry
Industry Median: 12.6 vs XSWX:MSFT: 10.20

During the past 12 months, Microsoft's average Dividends Per Share Growth Rate was 9.90% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 10.20% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 10.20% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 9.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.

Microsoft's Dividend Payout Ratio for the three months ended in Jun. 2026 was 0.20. As of today, Microsoft's Dividend Yield % is 0.36%.

For more information regarding to dividend, please check our Dividend Page.


Microsoft  (XSWX:MSFT) 3-Year Dividend Growth Rate Explanation

1. Dividend Payout Ratio measures the percentage of the company's earnings paid out as dividends.

Microsoft's Dividend Payout Ratio for the quarter that ended in Jun. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Jun. 2026 )/ EPS without NRI (Q: Jun. 2026 )
=0.727/ 3.589
=0.20

During the past 13 years, the highest Dividend Payout Ratio of Microsoft was 0.47. The lowest was 0.11. And the median was 0.27.

2. Dividend Yield % measures how much a company pays out in dividends each year relative to its share price.

Microsoft Recent Full-Year* Dividend History

Amount Ex-date Record Date Pay Date Type Frequency Forex Rate
USD 0.9100002026-05-212026-05-212026-06-11Cash DividendquarterlyUSD:CHF 0.781100
USD 0.9100002026-02-192026-02-192026-03-12Cash DividendquarterlyUSD:CHF 0.768600

* GuruFocus has an internal rule that if the most recent dividend payment frequency is at least 4 times a year, then the full year will be calculated according to the frequency of payment or the one-year time frame, whichever is stricter.
* GuruFocus converts dividend currency to local traded share price currency in order to calculate dividend yield. Please refer to the last column "Forex Rate" in the above table.

Microsoft's Dividend Yield (%) for Today is calculated as

Dividend Yield %=Most Recent Full Year Dividend/Current Share Price
=1.410227/401.90
=0.35 %

Current Share Price is CHF401.90.
Microsoft's Dividends per Share for the trailing twelve months (TTM) ended in Today is CHF1.410227.

During the past 13 years, the highest Dividend Yield of Microsoft was 2.51%. The lowest was 0.36%. And the median was 0.93%.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft 3-Year Dividend Growth Rate Related Terms>


XSWX:MSFT vs ORCL, PLTR, PANW: 3-Year Dividend Growth Rate Comparison

For the Software - Infrastructure subindustry, Microsoft's 3-Year Dividend Growth Rate, along with its competitors' market caps and 3-Year Dividend Growth Rate data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Microsoft 3-Year Dividend Growth Rate vs Software Industry

For the Software industry and Technology sector, Microsoft's 3-Year Dividend Growth Rate distribution charts can be found below:

* The bar in red indicates where Microsoft's 3-Year Dividend Growth Rate falls into.


XSWX:MSFT
100GF Score
Microsoft Corp XSWX:MSFT
3-Year Dividend Growth Rate is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft 3-Year Dividend Growth Rate Calculation

This is the average annual rate that a company has been raising its dividends. The growth rate is calculated with expontential compound based on the latest four year annual data.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.

What does a 3-Year Dividend Growth Rate of 10.20% mean?
Microsoft (XSWX:MSFT) has a 3-Year Dividend Growth Rate of 10.20% as of Jun. 2026. 3-Year Dividend Growth Rate is the company's three-year average growth of dividend payout. View historical data on Microsoft and its competitors. This is near median its historical median of 10.90. Over the past decade, Microsoft's 3-Year Dividend Growth Rate has ranged from 9.00 to 62.00. According to the industry distribution chart, Microsoft ranks #354 out of 641 companies in the Software industry, placing it in the top 55.2%.
Is Microsoft's 3-Year Dividend Growth Rate too high?
Microsoft's current 3-Year Dividend Growth Rate of 10.20% is near median its 10-year median of 10.90. Over the past 10 years, this metric has ranged from a low of 9.00 to a high of 62.00. The Software industry median 3-Year Dividend Growth Rate is 12.60. Microsoft's value of 10.20% is 19% below this industry median. Based on the distribution chart, Microsoft ranks #354 out of 641 companies in the Software industry, which is below the industry midpoint. Overall, Microsoft has a GF Score™ of 100/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's 3-Year Dividend Growth Rate compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #354 out of 641 companies for 3-Year Dividend Growth Rate. This places Microsoft in the lower half of its industry. The industry median 3-Year Dividend Growth Rate is 12.60. Microsoft's value of 10.20% is 19% below this benchmark. Historically, Microsoft's own 3-Year Dividend Growth Rate has ranged from 9.00 to 62.00 over the past decade. While the company's 10-year median is 10.90 vs. the industry median of 12.60, Microsoft has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Dividend Growth Rate for a Software company?
The median 3-Year Dividend Growth Rate among Software companies is 12.60, based on 641 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year Dividend Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year Dividend Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current 3-Year Dividend Growth Rate of 10.20% is 19% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Dividend Growth Rate mean?
A high 3-Year Dividend Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year Dividend Growth Rate is the company's three-year average growth of dividend payout. View historical data on Microsoft and its competitors. For the Software industry, the median 3-Year Dividend Growth Rate is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current 3-Year Dividend Growth Rate is 10.20%, which is near median its own 10-year median of 10.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (XSWX:MSFT) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF463.41, compared to a current price of CHF401.90 — trading 13.3% below its estimated fair value. The current 3-Year Dividend Growth Rate is 10.20%, which is near median its 10-year median of 10.90 and 19% below the Software industry median of 12.60. Microsoft's overall GF Score™ is 100/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Dividend Growth Rate calculated?
3-Year Dividend Growth Rate is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current 3-Year Dividend Growth Rate is 10.20% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Microsoft (XSWX:MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of CHF401.90 is trading 13.3% below its estimated GF Value™ of CHF463.41. GuruFocus considers Microsoft to be Modestly Undervalued.

Key valuation signals for XSWX:MSFT:

  • 3-Year Dividend Growth Rate: 10.20% (near median its 10-year median of 10.90)
  • GF Value™: CHF463.41 vs. price of CHF401.90 (13.3% below fair value)
  • GF Score™: 100/100 with 3 warning signs
  • Industry Position: 19% below the Software median (#354 of 641)

No single metric tells the full story. See the XSWX:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Microsoft Business Description

Address One Microsoft Way, Redmond, WA, USA, 98052-6399
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
100GF Score

Get the complete analysis for XSWX:MSFT

3-Year Dividend Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF401.90
Price
CHF463.41
GF Value