Thursday, September 18, 2014

Microsoft raises dividend 10.71%---New yield is 2.66%

Yesterday Microsoft (MSFT) raised its quarterly dividend 10.71% from $.28 to $.31.  The ex-dividend date is November 18th and the pay date is December 11th.  Since I currently own 150 shares this raise will increase my yearly dividends by $18.00.  Last September I received $34.00 from MSFT then it raised its dividend 21.74% and I received $42.00 during the last four quarters.  Starting in December I will be receiving $46.50.  I have not dripped or added to my position during this time. This is a perfect illustration of the power of dividend growth and I am glad to own shares of this fine company.

Microsoft has been a top performer within the DJIA trailing only Intel for the year.  This is a bit reminiscent of 1999.  Hopefully Microsoft will continue to deliver value for shareholders by continuing the yearly dividend increases.

10 comments:

  1. Pretty stellar evidence of the dividend growth strategy at work. No additional investment and yet your income has 37% over the past two years as a result.

    ReplyDelete
    Replies
    1. W2R,

      Microsoft has become a great dividend company. I only wish I had bought more shares when it was in the low 30s.

      MDP

      Delete
  2. Wow... thats a huge increase. Unfortunately I don't own MSFT and hopefully that is something I can pick up in the near future.
    Congrats on the raise.

    ReplyDelete
    Replies
    1. DGJ,

      Yeah, it was one of my first purchases and I bought it after an earnings miss last year. I still remember the price dropping from 34 to 31 in one day. I wish I had more shares.

      MDP

      Delete
  3. Congrats on the dividend increase. It's definitely a great company :) I don't own any shares yet though. I'm looking for a good time to jump in but the stock hasn't really had a significant pull back in awhile. I hear Microsoft is also planning to lay off some workers and switching up some board members. All positive changes for the bottom line presumably :)

    ReplyDelete
    Replies
    1. Liquid,

      Like I mentioned to DGJ, I got lucky and picked up shares after an earnings miss around $31. My only regret is that I didn't buy more shares. It's a sad truth that letting go of employees makes the market happy. I don't make the rules, but I certainly play by them.

      MDP

      Delete
  4. Kinda wish that I own MSFT. Have been looking for a while to jump in MSFT. That's a nice dividend hike!

    ReplyDelete
    Replies
    1. Tawcan,

      Most dividend investors don't flock to MSFT, but with a stable mature business and a pile of cash on hand, I think it's a dividend investors dream.

      MDP

      Delete
  5. We don't own MSFT but always nice to hear about a raise above 10%. I know there are many out there cheering for this news...happy to see investors get rewarded!

    Cheers to dividend increases! AFFJ

    ReplyDelete
    Replies
    1. AFFJ,

      10% after last year's 21% raise is good news to me. I also like CSCO in the tech space.

      MDP

      Delete