Microsoft Corporation

MSFT
Technology
$372.97
0.80%Fair Value

Microsoft Corporation (MSFT) is a Technology company that currently yields 0.80% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $127.79 and the overvaluation threshold at $435.40. Microsoft Corporation holds a quality score of 38/100 (Risky), reflecting 14 consecutive years of dividend growth with a 21% payout ratio. The 5-year dividend CAGR stands at 3.5%.

MSFT Dividend Yield History — Weiss Valuation

Underval. $127.79Overval. $435.40

Distance to undervalued

Waiting for a better entry

Needs about 65.7% downside to reach the Weiss buy zone

Undervaluation starts near $127.79, where the annual dividend would imply roughly 2.35% yield. That is 1.54% above today's yield.

Buy-zone price

$127.79

Target yield

2.35%

Research checklist

What to clear before buying the yield

Updated Jun 28, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

21%

Earnings coverage leaves room for noise.

Cash payout

73%

Free cash flow coverage supports the payment.

Dividend growth

3.5%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-06-272026-06-28

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Microsoft Corporation is trading at a fair valuation relative to its dividend history.

Current yield 0.8% vs historical max 3.3% (25% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 21%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 38/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

MSFT Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$83

Year 10 Income

$124

Yield on Cost

1.25%

Total Income

$1,021

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

See what MSFT dividends you actually received with Sharesight

Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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MSFT Dividend Quality Score

Quality Score

38/ 100

Risky

Payout Ratio25/25
Dividend Streak0/25
Growth (CAGR 5Y)8/20
Yield vs History0/15
FCF Coverage5/15

Key Metrics

Current Price$372.97
Annual Dividend$3.00
Current Yield0.80%
Yield — Max (10Y)3.25%
Yield — Min (10Y)0.71%
Undervalued Below$127.79
Overvalued Above$435.40
Payout Ratio20.73%
CAGR Dividend 5Y3.5%
CAGR Dividend 10Y6.9%
Years No Cut

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14
consecutive years of dividend growth