Technology giant Microsoft (NASDAQ: MSFT) is set to distribute its first dividend of 2026 in March, reinforcing its long-standing record of steady shareholder returns.
According to the latest dividend data, the company has declared a regular quarterly cash dividend of $0.91 per share, payable on March 12, 2026, to shareholders of record as of February 19, 2026.
At the current share price of $470.28, Microsoft’s dividend yield stands at 0.77%, reflecting the company’s status as a growth-focused technology stock rather than a high-yield income play.
Even so, the payout remains well covered. The forward payout ratio stands at 19.38%, indicating that only a small portion of earnings is being returned to shareholders, leaving ample room for reinvestment in its core businesses, including cloud infrastructure, artificial intelligence, and product expansion.
MSFT shares earnings
For investors holding 100 shares of MSFT, the upcoming dividend translates into a cash payment of $91 for the quarter. On an annualized basis, assuming the dividend rate remains unchanged, those same 100 shares would generate $364 in yearly dividend income.
This income stream comes alongside potential capital appreciation, with Microsoft’s market capitalization currently around $3.35 trillion.
It is worth noting that Microsoft has increased its dividend for 24 consecutive years, a track record that places it among the most consistent dividend growers in the technology sector.
The stock pays dividends on a quarterly basis, and historical data shows an average price recovery of just over one day following dividend payouts, suggesting limited short-term pressure from income-focused selling.
While the yield remains below the broader technology sector average of 1.37%, Microsoft’s dividend profile may appeal to long-term investors seeking a blend of stability, growth exposure, and predictable cash returns.
Beyond dividend developments, the broader market outlook for Microsoft stock remains in focus for investors entering 2026.
After a mixed start for major technology stocks this year, Microsoft’s share price has experienced some volatility as investors assess big tech earnings and the pace of growth in key segments such as Azure cloud services and AI-related revenue streams.
Analysts currently expect Microsoft to deliver strong earnings for its fiscal second quarter, which could provide near-term support for the stock, although some price targets have been trimmed as market conditions remain uncertain.
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