Microsoft Corporation
MSFTMicrosoft Corporation (MSFT) is a Technology company that currently yields 0.58% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $136.06 and the overvaluation threshold at $447.10. Microsoft Corporation holds a quality score of 33/100 (Risky), reflecting 14 consecutive years of dividend growth with a 20% payout ratio. The 5-year dividend CAGR stands at 3.5%.
MSFT Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 73.5% downside to reach the Weiss buy zone
Undervaluation starts near $136.06, where the annual dividend would imply roughly 2.20% yield. That is 1.62% above today's yield.
Buy-zone price
$136.06
Target yield
2.20%
Research checklist
What to clear before buying the yield
Updated Oct 1, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
20%Earnings coverage leaves room for noise.
Cash payout
176%Confirm cash conversion and one-off effects.
Dividend growth
3.5%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-09-30 → 2026-10-01
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Microsoft Corporation is trading near its historical overvaluation band.
Current yield 0.6% vs historical max 3.2% (18% of maximum).
Recent dividend history shows no sustained growth streak.
Conservative payout ratio of 20%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 33/100 quality score says the headline yield needs extra skepticism.
Free cash flow payout is above 100%, so cash coverage is the first risk to unpack.
MSFT Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$61
Year 10 Income
$88
Yield on Cost
0.89%
Total Income
$733
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗MSFT Dividend Quality Score
Quality Score
Risky
Key Metrics
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In-depth analysis
→ MSFT Dividend Analysis Article