Microsoft Co. (NASDAQ:MSFT) Plans Quarterly Dividend of $0.75

Microsoft Co. (NASDAQ:MSFTGet Free Report) declared a quarterly dividend on Tuesday, November 28th, RTT News reports. Investors of record on Thursday, February 15th will be given a dividend of 0.75 per share by the software giant on Thursday, March 14th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.71%. The ex-dividend date of this dividend is Wednesday, February 14th.

Microsoft has raised its dividend by an average of 10.1% per year over the last three years and has increased its dividend annually for the last 22 consecutive years. Microsoft has a dividend payout ratio of 22.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Microsoft to earn $13.12 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 22.9%.

Microsoft Stock Up 1.6 %

MSFT stock opened at $420.55 on Monday. The company has a current ratio of 1.22, a quick ratio of 1.20 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $3.12 trillion, a PE ratio of 38.02, a PEG ratio of 2.24 and a beta of 0.90. Microsoft has a 1-year low of $245.61 and a 1-year high of $420.82. The business’s 50 day simple moving average is $385.39 and its 200 day simple moving average is $354.31.

Microsoft (NASDAQ:MSFTGet Free Report) last posted its earnings results on Tuesday, January 30th. The software giant reported $2.93 earnings per share for the quarter, topping analysts’ consensus estimates of $2.76 by $0.17. The business had revenue of $62.02 billion for the quarter, compared to analyst estimates of $61.14 billion. Microsoft had a return on equity of 38.40% and a net margin of 36.27%. The firm’s revenue was up 17.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.32 EPS. As a group, research analysts anticipate that Microsoft will post 11.6 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages have commented on MSFT. StockNews.com lowered Microsoft from a “buy” rating to a “hold” rating in a report on Thursday, February 1st. Rosenblatt Securities upped their price objective on Microsoft from $370.00 to $375.00 and gave the company a “buy” rating in a report on Thursday, October 26th. China Renaissance began coverage on Microsoft in a report on Tuesday, December 5th. They issued a “buy” rating and a $466.00 price objective on the stock. Argus upped their price objective on Microsoft from $390.00 to $430.00 and gave the company a “buy” rating in a report on Tuesday, December 5th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $455.00 price objective on shares of Microsoft in a report on Thursday, January 25th. Four analysts have rated the stock with a hold rating and thirty-six have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $411.06.

Check Out Our Latest Analysis on Microsoft

Insider Buying and Selling at Microsoft

In other Microsoft news, insider Bradford L. Smith sold 45,000 shares of the stock in a transaction dated Friday, February 2nd. The stock was sold at an average price of $411.78, for a total value of $18,530,100.00. Following the completion of the transaction, the insider now directly owns 574,129 shares in the company, valued at $236,414,839.62. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, EVP Kathleen T. Hogan sold 24,681 shares of the stock in a transaction dated Friday, December 8th. The stock was sold at an average price of $369.00, for a total value of $9,107,289.00. Following the completion of the sale, the executive vice president now owns 183,761 shares of the company’s stock, valued at $67,807,809. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Bradford L. Smith sold 45,000 shares of the stock in a transaction dated Friday, February 2nd. The shares were sold at an average price of $411.78, for a total value of $18,530,100.00. Following the completion of the sale, the insider now directly owns 574,129 shares of the company’s stock, valued at approximately $236,414,839.62. The disclosure for this sale can be found here. Over the last three months, insiders sold 72,984 shares of company stock worth $28,978,803. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Microsoft

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Westfield Capital Management Co. LP increased its stake in shares of Microsoft by 16.0% in the fourth quarter. Westfield Capital Management Co. LP now owns 1,557,889 shares of the software giant’s stock valued at $585,829,000 after buying an additional 215,353 shares during the period. Founders Financial Alliance LLC increased its stake in shares of Microsoft by 2.1% in the fourth quarter. Founders Financial Alliance LLC now owns 31,123 shares of the software giant’s stock valued at $11,704,000 after buying an additional 631 shares during the period. Nomura Asset Management Co. Ltd. grew its stake in Microsoft by 0.4% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 3,371,556 shares of the software giant’s stock worth $1,267,840,000 after purchasing an additional 12,619 shares during the period. Nixon Peabody Trust Co. grew its stake in Microsoft by 500.1% during the fourth quarter. Nixon Peabody Trust Co. now owns 160,707 shares of the software giant’s stock worth $60,432,000 after purchasing an additional 133,926 shares during the period. Finally, Skopos Labs Inc. acquired a new stake in Microsoft during the fourth quarter worth approximately $16,358,000. Institutional investors and hedge funds own 69.20% of the company’s stock.

About Microsoft

(Get Free Report)

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.

See Also

Dividend History for Microsoft (NASDAQ:MSFT)

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