Microsoft (CHIX:MSFD) Dividend Payout Ratio: 0.22 (As of Mar. 2026) — 29% Below Median


CHIX:MSFD Microsoft Corp CHIX:MSFD
85 GF Score
Price €329.50
GF Value €491.76
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Microsoft Dividend Payout Ratio?

Microsoft CHIX:MSFD -0.18% 85 Dividend Payout Ratio is 0.22 as of Mar. 2026, which is 29% below its 10-year median of 0.31. GuruFocus rates CHIX:MSFD with a GF Score™ of 85/100 and a GF Value™ of €491.76 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 865 Software companies, Microsoft ranks better than 78.38% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Microsoft's Dividend Payout Ratio for the months ended in Mar. 2026 was 0.22.

The historical rank and industry rank for Microsoft's Dividend Payout Ratio or its related term are showing as below:

CHIX:MSFd' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.22   Med: 0.31   Max: 0.52
Current: 0.22

During the past 13 years, the highest Dividend Payout Ratio of Microsoft was 0.52. The lowest was 0.22. And the median was 0.31.

CHIX:MSFd's Dividend Payout Ratio is ranked better than
78.38% of 865 companies
in the Software industry
Industry Median: 0.41 vs CHIX:MSFd: 0.22

As of today (2026-06-24), the Dividend Yield % of Microsoft is 0.93%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Microsoft was 2.72%. The lowest was 0.62%. And the median was 0.94%.

Microsoft's Dividends per Share for the months ended in Mar. 2026 was €0.79.

During the past 12 months, Microsoft's average Dividends Per Share Growth Rate was 10.10% 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 10.00% per year.

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 11.65% per year.

The growth rate is calculated with least square regression.

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

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Microsoft (CHIX:MSFd) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Microsoft Dividend Payout Ratio Related Terms

Microsoft Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Microsoft's Dividend Payout Ratio can be seen below:

* 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 Dividend Payout Ratio Chart

Microsoft Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.07 0.25 0.24

Microsoft Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.24 0.23 0.20 0.22 0.22

CHIX:MSFD vs ORCL, PLTR, PANW: Dividend Payout Ratio Comparison

For the Software - Infrastructure subindustry, Microsoft's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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 Dividend Payout Ratio vs Software Industry

For the Software industry and Technology sector, Microsoft's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Microsoft's Dividend Payout Ratio falls into.


CHIX:MSFD
85GF Score
Microsoft Corp CHIX:MSFD
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Microsoft's Dividend Payout Ratio for the fiscal year that ended in Jun. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Jun. 2025 )/ EPS without NRI (A: Jun. 2025 )
=2.809/ 11.868
=0.24

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

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.787/ 3.554
=0.22

* 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.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.22 mean?
Microsoft (CHIX:MSFD) has a Dividend Payout Ratio of 0.22 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Microsoft and its competitors. This is 29% below median its historical median of 0.31. Over the past decade, Microsoft's Dividend Payout Ratio has ranged from 0.22 to 0.52. According to the industry distribution chart, Microsoft ranks #187 out of 865 companies in the Software industry, placing it in the top 21.6%.
Is Microsoft's Dividend Payout Ratio too high?
Microsoft's current Dividend Payout Ratio of 0.22 is 29% below median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 0.52. The Software industry median Dividend Payout Ratio is 0.41. Microsoft's value of 0.22 is 46.3% below this industry median. Based on the distribution chart, Microsoft ranks #187 out of 865 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Microsoft has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Dividend Payout Ratio compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #187 out of 865 companies for Dividend Payout Ratio. This places Microsoft in the top 22% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.41. Microsoft's value of 0.22 is 46.3% below this benchmark. Historically, Microsoft's own Dividend Payout Ratio has ranged from 0.22 to 0.52 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 0.41, 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 Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 865 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Dividend Payout Ratio of 0.22 is 46.3% 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Microsoft and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Dividend Payout Ratio is 0.22, which is 29% below median its own 10-year median of 0.31. 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 (CHIX:MSFD) is currently considered Significantly Undervalued. The stock's GF Value™ is €491.76, compared to a current price of €329.50 — trading 33% below its estimated fair value. The current Dividend Payout Ratio is 0.22, which is 29% below median its 10-year median of 0.31 and 46.3% below the Software industry median of 0.41. Microsoft's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current Dividend Payout Ratio is 0.22 as of Mar. 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 (CHIX:MSFD) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of €329.50 is trading 33% below its estimated GF Value™ of €491.76. GuruFocus considers Microsoft to be Significantly Undervalued.

Key valuation signals for CHIX:MSFD:

  • Dividend Payout Ratio: 0.22 (29% below median its 10-year median of 0.31)
  • GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
  • GF Score™: 85/100 with 2 warning signs
  • Industry Position: 46.3% below the Software median (#187 of 865)

No single metric tells the full story. See the CHIX:MSFD 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).
85GF Score

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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€329.50
Price
€491.76
GF Value