Microsoft (NASDAQ: MSFT) has announced its next quarterly dividend, valued at $0.91 per share, scheduled for payout on December 11, 2025. This marks a significant 9.6% increase from the prior quarter’s dividend of $0.83 per share on September 11.
Breaking Down the Dividend
With Microsoft’s current stock price at $506, the forward annual yield stands at 0.72%. Investors holding 100 shares can expect to receive $91 this quarter or $364 annually, assuming no changes in the yield. This consistent and attractive dividend policy makes Microsoft a compelling choice for dividend-focused investors.
For comparison, Nvidia (NASDAQ: NVDA) offers a markedly lower forward annual yield of just 0.021% during the same dividend cycle, underscoring Microsoft’s strengths as a dividend-paying stock.
Recent Market Movements
Despite strong financial performance, Microsoft’s stock has faced volatility. Currently trading at $504.60, it remains 0.2% down on the daily chart, still struggling to shake off the effects of a 1% five-day decline. This recent dip follows insider selling by Director Bradford L. Smith, who offloaded 38,500 shares worth $19.97 million, sparking profit-taking among other shareholders.
Additionally, Microsoft’s partnership with OpenAI has added $3.1 billion in costs, which reduced earnings per share (EPS) by $0.41. Similarly, dwindling Xbox sales have posed challenges to the company. Technically, the stock is trading below its key short-term moving averages, suggesting potential for further downside, though the long-term investor outlook remains positive.
How to Benefit from Microsoft’s Growth
Dividend investors can leverage reinvestment strategies to benefit from Microsoft’s growing cash payouts. Tools such as dividend reinvestment plans (DRIPs) allow you to automatically reinvest received dividends into additional company shares, amplifying long-term returns.
If you’re looking for top-tier portfolio tools, platforms like eToro let you not only invest in Microsoft but also in diversified assets like stocks and precious metals, with 0% commission on stock purchases. It’s an affordable way to optimize your investments, whether you’re starting or managing a portfolio.
Conclusion
Microsoft continues to stand out as a reliable dividend-paying stock, making it a core component for income-focused investors. As the company invests strategically in groundbreaking partnerships like OpenAI, short-term challenges may arise, but the long-term growth story remains intact for those willing to stay the course.
