Microsoft Corporation MSFT | NASDAQ

Dividends

Company Overview:

Market Cap: $3,876.67B
Trailing PE: 27.4x
FWD PE *: 25.2x
Payout Ratio (TTM): 19.0%
52-Week Range: $349.20 - $559.15

* Forward PE is based on street estimates.

10 Year MSFT Performance Metrics:

Total Return (with DRIP): 913% (26.07% CAGR)
Total Return (no DRIP): 843% (25.16% CAGR)
Share Price: 802% (24.61% CAGR)
Yield on Cost (with DRIP): 7.03%
Total Invested: $10,000
Total Value (with DRIP): $101,283
Total Return $ (with DRIP): $91,283
Dividend Increase: 133.3% (9.07% CAGR)
Dividend Yield (FWD): 0.69% ($3.64)
MSFT 10-yr Total Return ($10K invested)
1M 3M 6M YTD 1Y 3Y 5Y 10Y
MSFT Share Price
1M 3M 6M YTD 1Y 3Y 5Y 10Y All
MSFT Price CAGR:1Y: 4.15%2Y: 11.03%5Y: 9.26%10Y: 24.60%
MSFT Dividend Charts
MSFT - Dividends
MSFT Dividend CAGR:1Y: 7.69%2Y: 8.66%5Y: 9.59%10Y: 9.65%
MSFT - Dividend Payout Ratio
MSFT Dividend Payout Ratio CAGR:1Y: -17.03%2Y: -9.65%5Y: -2.10%10Y: -9.38%
MSFT - Dividend to Free Cash Flow Ratio
MSFT Dividend to FCF Ratio CAGR:1Y: 50.86%2Y: 11.93%5Y: 10.06%10Y: 1.97%
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MSFT - Chart 1
MSFT - Chart 2
MSFT - Chart 3

MSFT Financials: Earnings, Revenue, Cash Flow, Ebitda, Cash/Debt, Shares Float, etc:

Revenue
MSFT Revenue CAGR:1Y: 18.80%2Y: 18.62%5Y: 15.28%10Y: 15.45%
Earnings Per Share (EPS)
MSFT EPS CAGR:1Y: 32.26%2Y: 22.10%5Y: 12.67%10Y: 21.19%
Net Income
MSFT Net Income CAGR:1Y: 32.01%2Y: 21.86%5Y: 12.30%10Y: 20.52%
EBITDA
MSFT EBITDA CAGR:1Y: 24.41%2Y: 23.77%5Y: 19.26%10Y: 20.49%
Free Cash Flow
MSFT Free Cash Flow CAGR:1Y: -27.39%2Y: -1.63%5Y: -0.10%10Y: 7.10%
Free Cash Flow / Share
MSFT Free Cash Flow / Share CAGR:1Y: -27.33%2Y: -1.59%5Y: 0.13%10Y: 7.61%
Operating Income
MSFT Operating Income CAGR:1Y: 20.95%2Y: 22.59%5Y: 17.80%10Y: 21.20%
Gross Profit
MSFT Gross Profit CAGR:1Y: 16.65%2Y: 17.28%5Y: 14.58%10Y: 16.08%
Shares Outstanding
MSFT Shares Outstanding CAGR:1Y: -0.27%2Y: -0.16%5Y: -0.32%10Y: -0.56%
Share Buybacks
MSFT Share Buybacks CAGR:1Y: -22.50%2Y: 3.26%5Y: -10.64%10Y: 0.04%
Stock-Based Comp
MSFT Stock-Based Comp CAGR:1Y: 5.06%2Y: 5.20%5Y: 12.99%10Y: 16.12%
Expenses
MSFT Expenses CAGR:1Y: 102.99%2Y: 62.42%5Y: 46.62%10Y: 33.66%
Revenue vs Net Income
EPS vs FCF / Share
EPS vs PE Ratio
FCF vs FCF / Share
FCF vs Stock Based Comp
Cash & Debt
Revenue by Segment
MSFT Revenue CAGR:1Y: 18.80%2Y: 18.62%5Y: 15.28%10Y: 15.45%
Revenue by Region
MSFT Revenue CAGR:1Y: 18.80%2Y: 18.62%5Y: 15.28%10Y: 15.45%

Revenue, EPS, Net Income & Ebitda - Estimates VS Actual:

REVENUE: Actual + Estimates
MSFT Actual Revenue CAGR:1Y: 18.80%2Y: 18.62%5Y: 15.28%10Y: 15.45%
EPS: Actual + Estimates
MSFT Actual EPS CAGR:1Y: 32.26%2Y: 22.10%5Y: 12.67%10Y: 21.19%
NET INCOME: Actual + Estimates
MSFT Actual Net Income CAGR:1Y: 32.01%2Y: 21.86%5Y: 12.30%10Y: 20.52%
EBITDA: Actual + Estimates
MSFT Actual EBITDA CAGR:1Y: 24.41%2Y: 23.77%5Y: 19.26%10Y: 20.49%

Ratios, Profit Margins & Return on Capital:

Net Profit Margin
MSFT Net Profit Margin CAGR:1Y: 11.11%2Y: 2.73%5Y: -2.59%10Y: 4.39%
Gross Profit Margin
MSFT Gross Profit Margin CAGR:1Y: -1.82%2Y: -1.13%5Y: -0.61%10Y: 0.54%
Price to Earnings
MSFT Price to Earnings CAGR:1Y: -25.08%2Y: -10.41%5Y: 0.15%10Y: 2.80%
Price To Sales Ratio
MSFT Price To Sales Ratio CAGR:1Y: -16.73%2Y: -8.00%5Y: -2.46%10Y: 7.27%
Return on Capital Employed
MSFT Return on Capital Employed CAGR:1Y: -3.35%2Y: -1.17%5Y: -1.62%10Y: 5.29%
Return on Invested Capital
MSFT Return on Invested Capital CAGR:1Y: -3.92%2Y: -2.38%5Y: -5.96%10Y: 5.57%

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MSFT Dividends Info:

Annual Dividend: $3.92
Forward Yield: 0.75%
Ex-Dividend Date: 2026-11-19
Lifetime Dividends / Share: $37.53

Projected Future Returns & Dividends for MSFT

Based on past 10-year performance, here are MSFT growth metrics:

Share price CAGR of +24.6%
Dividend CAGR of +9.65%

Using MSFT CAGR metrics, we can estimate that your initial $10000 investment, over the next 10 years, should grow as follows:

MSFT (DRIP)MSFT - No DRIP
Current Price$524.19$524.19
Start Shares19.0819.08
Start Value$10,000$10,000
  
After 10 years:
Final Share Count19.9519.08
Dividends Payment$2.46$2.46
Annual Dividends$197$188
Yield on cost1.97%1.88%
Share Price$4,727.72$4,727.72
Total Dividends$1,208$1,172
Final Value$94,337$91,363

Estimated Future Value + Dividends - MSFT

NOTE: Above numbers are our estimate based on MSFT's Dividend and Price CAGR over past 10 years. These numbers should only be considered as "potential future returns"! DRIP assumes reinvesting dividends; No-DRIP assumes collecting dividends as cash.

We cannot guarantee that your actual returns will meet these estimates.

Company Info

Microsoft Corporation (MSFT) had its IPO on 1986-03-13, and is traded on NASDAQ stock exchange.

Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.

MSFT website: https://www.microsoft.com


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DCF Model — MSFT

Value from:
Pay up to today
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vs current price $524.19
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Cash flow & implied price by year

FCF is negative or missing for this company (common for banks) — the model discounts EPS instead.

EPS is negative or missing for this company — Simple mode uses free cash flow per share instead.

Free cash flow today
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grows for the next years
Then mature
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every future dollar counted back to today
Pile of today-dollars
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÷ shares
Implied price path
YearFCFImplied price
Sensitivity — fair value: growth ↓ × target return →