Microsoft Announces Quarterly Dividend

GuruFocus.com
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- By Julie Young

Microsoft (MSFT) has announced a quarterly dividend of 39 cents with an ex-dividend date of May 16 and a payable date of June 8. With the quarterly dividend the firm's forward dividend yield is now 2.41% which is slightly higher than its trailing 12-month dividend of 2.32%.

The firm has kept its dividend at 39 cents for the past three quarters.


Microsoft is trading at $65.13 with a year-to-date return of 4.86%. It has a three-year return of 72.84% and a five-year return of 99.88%. Institutional wealth managers are the leading shareholders of the stock with 67% of the shares outstanding. Among institutional wealth managers, Vanguard holds the greatest proportion of the outstanding shares at 6.8%. Top hedge fund managers owning the stock include: Dodge & Cox (0.55%), First Eagle Investment (Trades, Portfolio) (0.31%), Barrow, Hanley, Mewhinney & Strauss (0.24%) and Ken Fisher (Trades, Portfolio) (0.24%).

In the firm's most recent earnings report on Jan. 26, it reported results for its second quarter of fiscal year 2017. Revenue for the quarter was $24.1 billion bringing annual revenue to $44.5 billion, an increase from $44.2 billion in 2016. Unadjusted earnings per share for the quarter were 66 cents, bringing annual earnings per share to $1.26, an increase from $1.23.

Productivity and business processes and intelligent cloud are leading revenue gains for the year. Productivity and business processes is reporting an 8% gain in revenue from 2016 with a profit margin of 45%. Intelligent cloud is also reporting an 8% gain in revenue with a profit margin of 34%.

Disclosure: I do not directly own any shares of Microsoft.

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