Microsoft Approves Bigger Dividend Ahead Of Shareholder Meeting

Microsoft Corporation MSFT said on Monday that its board of directors approved a quarterly dividend of 91 cents per share, representing an increase of 8 cents, or 10%, from the prior payout.

The dividend will be distributed on December 11, 2025, to shareholders of record as of November 20, 2025, which is also the ex-dividend date.

The company also set December 5, 2025, as the date for its annual shareholders meeting. Investors of record at the close of business on September 30, 2025, will be eligible to vote.

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The dividend boost comes on the heels of strong quarterly results. In July, Microsoft reported fourth-quarter revenue of $76.44 billion, up 17% year-over-year. The revenue total beat a Street consensus estimate of $73.80. The company reported fourth-quarter earnings per share of $3.65, beating a Street consensus estimate of $3.37.

For the first quarter, Microsoft expects sales in a range of $74.70 billion to $75.80 billion versus $74.07 billion analyst estimate.

Analysts have highlighted Microsoft’s cloud and artificial intelligence momentum as key growth drivers. Wedbush analyst Dan Ives described the company’s fourth-quarter results as “eye-popping,” citing strong demand for cloud services and AI products.

“Microsoft delivered strong fourth quarter results with strong guidance to start the year as the company’s ‘shining moment’ is now underway with AI already changing the growth trajectory of MSFT’s cloud growth story,” Ives said.

He pointed to the launch of Azure AI Foundry as particularly important for enterprise adoption, adding that fiscal 2026 could be the company’s “true inflection year” for AI-driven growth. “We believe Microsoft is just hitting its next phase of monetization on the AI front,” he said.

Other analysts have echoed that optimism. Cantor Fitzgerald analyst Thomas Blakey maintained an Overweight rating and raised his price forecast from $581 to $639.

Oppenheimer analyst Brian Schwartz reiterated an Outperform rating and lifted his forecast from $600 to $630. KeyBanc analyst Jackson Ader upgraded the stock to Overweight with a $630 forecast. Piper Sandler’s Brent Bracelin also reaffirmed an Overweight rating, raising his forecast from $600 to $650.

Price Action: MSFT stock is trading higher by 0.08% to $515.80 premarket at last check Tuesday.

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