Microsoft Corporation
MSFTMicrosoft 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
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
14YLong 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
2026-06-27 → 2026-06-28
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
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Dividend income log · Yield on cost · DRIP cost basis · Tax reports
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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