Microsoft is poised both strategically and financially for growth , including their dividend yield, over the coming years. After what people call a decade of stagnation under Ballmer, MSFT has turned things around with their new CEO Satya Nadella, their former head of Cloud computing. He brings new and fresh vision to the company, which the market seems to really like. Since his rise to CEO, MSFT shares of skyrocketed by almost 25%
Along with their new vision, MSFT has focused on cloud computing by signing up almost 1 million subscribers for Office365. Their aim is take on Google and Amazon head on and gain market share for enterprise level cloud services. So far, MSFT seen triple digit growth in that area as their personal computing division has been lagging. However, with Windows 9 on the horizon and the expiration of Windows XP support, we should see personal computing bounce back in the coming quarters.
As for their dividend, MSFt currently sits at a 2.48% yield of $1.12 in dividends annually. With a payout ratio of only 41.2%, MSFT has plenty of room to grow their dividend yield moving forward. In fact, in 2013 MSFT grew their yield by 16.9%.With 10 years of dividend history, MSFT isn’t a dividend champion, but they are well on their way.
Check out the video below for a more detailed analysis