Microsoft boosts its dividend by 7.7% to 98 cents per share, signaling management confidence in cash flow generation despite a massive $175 billion AI-focused capital expenditure plan for fiscal 2027.
Microsoft raised its dividend by 7.69% and analysts remain bullish with raised price targets despite heavy capex.
Microsoft has increased its quarterly dividend to 98 cents per share, marking 23 consecutive years of payout growth. Despite record capital expenditures projected at $175 billion for fiscal 2027 to support AI infrastructure, analysts maintain a bullish outlook, citing strong cloud growth and a sustainable payout ratio that consumes less than half of the company's annual free cash flow.
Yes, the current annual dividend cost of $29 billion represents less than half of Microsoft's fiscal 2026 free cash flow, suggesting the company maintains significant financial flexibility despite record infrastructure spending.