Technology giant Microsoft Corporation (MSFT) recently announced a quarterly dividend of $0.62 per share, an increase of about 11% from the previous dividend of $0.56. The dividend will be paid on December 9, 2021, to shareholders of record as of November 18, 2021.
The company’s annual dividend of $2.30 per share now reflects a dividend yield of 0.8% based on Tuesday’s closing price.
Notably, the company has been raising its quarterly dividend consistently over the past decade, making it an attractive choice for investors. (See Microsoft stock chart on TipRanks)
Meanwhile, the company has announced a new share repurchase program and authorized up to $60 billion in share repurchases. The new share repurchase program has no expiration date.
On September 14, Morgan Stanley analyst Keith Weiss reiterated a Buy rating on the stock. The analyst, however, raised the price target from $305 to $331, which implies upside potential of 10.4% from current levels.
Consensus among analysts is a Strong Buy based on 22 unanimous Buys. The average Microsoft price target of $332.33 implies upside potential of 10.9% from current levels.
Microsoft scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 43.6% over the past year.