Microsoft dividend yield & history for Indian investors
US tech giants like Microsoft are gaining traction with Indian investors who want global diversification, dollar-denominated assets, and access to stable companies that pay a steady income. While Microsoft is widely known for its business performance, what’s often missed is its consistent and rewarding dividend track record.
The Microsoft dividend might not grab headlines the way stock splits or earnings beats do, but for Indian investors looking at long-term income and compounding potential, it’s worth a closer look. Many don’t realise how reliable these dividend payouts have been—or how much impact taxes, currency conversion, and dividend schedules can have on their actual returns.
So, what should you know before investing in Microsoft as a dividend stock from India? In this blog, we’ll explain the current Microsoft dividend yield and how it translates into INR after taxes. We’ll walk you through Microsoft’s dividend history and how its payouts have held up across decades. You’ll also learn when Microsoft typically announces its dividends, and why many Indians view it as a top dividend-paying stock for the long run.
Whether you’re looking to build a passive income portfolio or want to hold resilient US stocks with a steady return, understanding Microsoft’s dividend can help you make smarter choices. Let’s break it down in simple terms, from US dollars to rupees.
Understanding Microsoft’s current dividend yield for Indian investors
What is Microsoft’s current dividend yield?
As of April 2024, Microsoft pays a quarterly dividend of $0.75 per share, which adds up to $3.00 annually. Based on its share price hovering around $320, the current MSFT dividend yield is approximately 0.94%.
This may seem modest compared to high-yield stocks, but for a growth-focused tech company like Microsoft, it reflects a disciplined payout strategy. The company has steadily increased dividends for 19 consecutive years, making it a reliable income source for long-term investors.
Keep in mind, dividend yields fluctuate with stock prices. A lower share price can increase yield, and vice versa. So if you're buying Microsoft for its dividend, it's important to assess both the yield and the sustainability of the payout.
How Indian investors can evaluate true returns
To understand your actual dividend return from India, you need to consider what reaches your bank account after taxes and conversion. Let’s say you hold 10 MSFT shares. You’ll receive $7.50 per quarter before taxes.
After applying the 25% U.S. withholding tax on dividends, you’re left with $5.63. Multiply that by four quarters, and your annual post-tax dividend becomes $22.50.
If the USD/INR exchange rate is 83, that translates to roughly ₹1,870 a year. On 10 shares worth ₹265,000 (10 x $320 x 83), that’s about a 0.71% post-tax yield in INR terms.
Currency conversion and withholding tax considerations
Since Microsoft dividends are paid in U.S. dollars, currency moves affect your INR returns. A strengthening dollar raises your rupee payout, while a falling dollar reduces it.
Also, India has a Double Taxation Avoidance Agreement (DTAA) with the U.S., so the 25% tax withheld in the U.S. can usually be adjusted against your Indian income tax liability via Form 67.
This ensures you're not taxed twice on the same income. It helps improve your effective returns if you correctly report the tax credit while filing.
Bottom line: it's not just the MSFT dividend yield that matters, but also how much of it you actually receive in hand. Let's now see how that payout has evolved over time.
A look at Microsoft’s dividend history and growth
Timeline of Microsoft’s dividend increases
The Microsoft corporation dividend story started in 2003, when the company paid its very first cash dividend of $0.08 per share. That move marked a shift in Microsoft’s capital policy—sharing its strong cash position with shareholders.
Since then, dividends have grown steadily. By 2010, the annual payment reached $0.52 per share. A decade later, that figure climbed to $2.04 by 2020. As of 2024, it's $3.00 per share annually—a nearly 9x growth over 21 years.
Microsoft has raised its dividend every year since 2004, including during downturns. The increase in September 2023 took the quarterly payout from $0.68 to $0.75 per share—up 10.3%. That consistency makes Microsoft an attractive dividend stock for investors globally, including in India.
Performance during economic cycles
Microsoft’s dividend history stands out because of its resilience in tough markets. During the 2008 global financial crisis, Microsoft didn’t cut dividends. Instead, it raised them. The same pattern held during the COVID-19 dip in 2020.
Even as many companies paused or slashed dividends to preserve cash, Microsoft kept its dividend momentum intact. That reflects its stable operating model powered by cloud services, Office subscriptions, and enterprise demand.
This track record suggests that Microsoft doesn’t just pay dividends—it does so through highs and lows. For Indian investors seeking reliability amid global uncertainty, that’s a rare trait in a tech stock.
Commitment to long-term dividend growth
Microsoft generates massive free cash flow—over $60 billion a year. That’s what backs every dividend payout. The company’s dividend payout ratio sits around 25-30%, meaning it pays out a small fraction of earnings, keeping ample room for reinvestment and future raises.
This balance between shareholder returns and business investment reflects Microsoft’s long-term approach. The board reviews dividend payouts annually, usually around September, aiming for sustainable increases aligned with earnings growth.
For Indian investors, that means you’re not betting on short-term swings. You’re investing in a proven dividend policy supported by global software demand. Next, let’s look at why Microsoft makes sense as a dividend stock in your portfolio.
Why Microsoft dividend stock is attractive for Indian investors
Stability and global exposure
Microsoft offers something rare in the tech world—stability. With its diverse revenue streams from cloud services, software, and gaming, its earnings stay steady even during economic turbulence.
If you're an Indian investor, owning Microsoft dividend stock gives you exposure to a global tech leader while reducing concentration risk in Indian equities. Plus, dividends in U.S. dollars can add currency diversification to your portfolio.
This mix of low-beta performance and reliable income makes Microsoft a compelling choice if you want both safety and participation in the global tech economy.
Consistent income with capital appreciation
While the dividend yield may look modest at first glance, Microsoft has delivered strong total returns. Over the past 10 years, the stock has not only paid increasing dividends but also nearly 7x’d in value.
Your income increases with payout hikes, and the stock value typically rises as earnings grow. That’s a dual benefit—income today and growth for tomorrow. Compared to Indian fixed deposits or local dividend stocks, this combination is hard to match.
So, if you're aiming for long-term wealth creation in foreign currency, Microsoft fits right in with its blend of yield and appreciation potential.
Dividend reinvestment and compounding potential
Many international brokers allow Indians to reinvest dividends directly by using the Liberalised Remittance Scheme (LRS). With Microsoft's quarterly payouts, you can gradually buy more shares and benefit from compounding.
Think of it like a snowball—each dividend adds slightly more to your share count, which increases the next quarter’s payout. Over a 10-year horizon, reinvesting your Microsoft dividend stock income can significantly increase your overall returns.
Plus, dividend reinvestment reduces the impact of short-term fluctuations by averaging out your purchase price over time.
Now that you understand why Microsoft dividend stock holds long-term appeal, it's worth knowing when these payouts occur. Timing matters—let’s look at Microsoft’s dividend announcement and payment schedule next.
When does Microsoft announce and pay its dividends?
Understanding Microsoft’s dividend schedule
Microsoft follows a consistent quarterly dividend pattern. The company typically announces dividends during the second half of each quarter—February, May, August, and November. After the announcement, there are two important dates to note: the record date and the payment date.
The ex-dividend date usually falls 1-2 business days before the record date. You need to own MSFT shares before this ex-dividend date to be eligible for the upcoming payout. Payments are generally made about four weeks after the announcement.
For example, if Microsoft declares a dividend on May 14, the ex-dividend date might be May 15, and the payment might arrive around June 13. Microsoft’s official investor relations page and global trading platforms like Winvesta or Interactive Brokers will publish all dates ahead of time.
How Indian investors can align purchases
As an Indian investor, timing your purchase of MSFT stock dividends matters if you want to receive quarterly payouts. Buying after the ex-dividend date means you’ll have to wait at least three more months for the next one.
You don’t need to time every dividend, but if regular income is your goal, staying informed ensures you don’t miss out unnecessarily. Next, let’s answer some common questions that Indian investors ask about Microsoft’s dividend payments and returns.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
US tech giants like Microsoft are gaining traction with Indian investors who want global diversification, dollar-denominated assets, and access to stable companies that pay a steady income. While Microsoft is widely known for its business performance, what’s often missed is its consistent and rewarding dividend track record.
The Microsoft dividend might not grab headlines the way stock splits or earnings beats do, but for Indian investors looking at long-term income and compounding potential, it’s worth a closer look. Many don’t realise how reliable these dividend payouts have been—or how much impact taxes, currency conversion, and dividend schedules can have on their actual returns.
So, what should you know before investing in Microsoft as a dividend stock from India? In this blog, we’ll explain the current Microsoft dividend yield and how it translates into INR after taxes. We’ll walk you through Microsoft’s dividend history and how its payouts have held up across decades. You’ll also learn when Microsoft typically announces its dividends, and why many Indians view it as a top dividend-paying stock for the long run.
Whether you’re looking to build a passive income portfolio or want to hold resilient US stocks with a steady return, understanding Microsoft’s dividend can help you make smarter choices. Let’s break it down in simple terms, from US dollars to rupees.
Understanding Microsoft’s current dividend yield for Indian investors
What is Microsoft’s current dividend yield?
As of April 2024, Microsoft pays a quarterly dividend of $0.75 per share, which adds up to $3.00 annually. Based on its share price hovering around $320, the current MSFT dividend yield is approximately 0.94%.
This may seem modest compared to high-yield stocks, but for a growth-focused tech company like Microsoft, it reflects a disciplined payout strategy. The company has steadily increased dividends for 19 consecutive years, making it a reliable income source for long-term investors.
Keep in mind, dividend yields fluctuate with stock prices. A lower share price can increase yield, and vice versa. So if you're buying Microsoft for its dividend, it's important to assess both the yield and the sustainability of the payout.
How Indian investors can evaluate true returns
To understand your actual dividend return from India, you need to consider what reaches your bank account after taxes and conversion. Let’s say you hold 10 MSFT shares. You’ll receive $7.50 per quarter before taxes.
After applying the 25% U.S. withholding tax on dividends, you’re left with $5.63. Multiply that by four quarters, and your annual post-tax dividend becomes $22.50.
If the USD/INR exchange rate is 83, that translates to roughly ₹1,870 a year. On 10 shares worth ₹265,000 (10 x $320 x 83), that’s about a 0.71% post-tax yield in INR terms.
Currency conversion and withholding tax considerations
Since Microsoft dividends are paid in U.S. dollars, currency moves affect your INR returns. A strengthening dollar raises your rupee payout, while a falling dollar reduces it.
Also, India has a Double Taxation Avoidance Agreement (DTAA) with the U.S., so the 25% tax withheld in the U.S. can usually be adjusted against your Indian income tax liability via Form 67.
This ensures you're not taxed twice on the same income. It helps improve your effective returns if you correctly report the tax credit while filing.
Bottom line: it's not just the MSFT dividend yield that matters, but also how much of it you actually receive in hand. Let's now see how that payout has evolved over time.
A look at Microsoft’s dividend history and growth
Timeline of Microsoft’s dividend increases
The Microsoft corporation dividend story started in 2003, when the company paid its very first cash dividend of $0.08 per share. That move marked a shift in Microsoft’s capital policy—sharing its strong cash position with shareholders.
Since then, dividends have grown steadily. By 2010, the annual payment reached $0.52 per share. A decade later, that figure climbed to $2.04 by 2020. As of 2024, it's $3.00 per share annually—a nearly 9x growth over 21 years.
Microsoft has raised its dividend every year since 2004, including during downturns. The increase in September 2023 took the quarterly payout from $0.68 to $0.75 per share—up 10.3%. That consistency makes Microsoft an attractive dividend stock for investors globally, including in India.
Performance during economic cycles
Microsoft’s dividend history stands out because of its resilience in tough markets. During the 2008 global financial crisis, Microsoft didn’t cut dividends. Instead, it raised them. The same pattern held during the COVID-19 dip in 2020.
Even as many companies paused or slashed dividends to preserve cash, Microsoft kept its dividend momentum intact. That reflects its stable operating model powered by cloud services, Office subscriptions, and enterprise demand.
This track record suggests that Microsoft doesn’t just pay dividends—it does so through highs and lows. For Indian investors seeking reliability amid global uncertainty, that’s a rare trait in a tech stock.
Commitment to long-term dividend growth
Microsoft generates massive free cash flow—over $60 billion a year. That’s what backs every dividend payout. The company’s dividend payout ratio sits around 25-30%, meaning it pays out a small fraction of earnings, keeping ample room for reinvestment and future raises.
This balance between shareholder returns and business investment reflects Microsoft’s long-term approach. The board reviews dividend payouts annually, usually around September, aiming for sustainable increases aligned with earnings growth.
For Indian investors, that means you’re not betting on short-term swings. You’re investing in a proven dividend policy supported by global software demand. Next, let’s look at why Microsoft makes sense as a dividend stock in your portfolio.
Why Microsoft dividend stock is attractive for Indian investors
Stability and global exposure
Microsoft offers something rare in the tech world—stability. With its diverse revenue streams from cloud services, software, and gaming, its earnings stay steady even during economic turbulence.
If you're an Indian investor, owning Microsoft dividend stock gives you exposure to a global tech leader while reducing concentration risk in Indian equities. Plus, dividends in U.S. dollars can add currency diversification to your portfolio.
This mix of low-beta performance and reliable income makes Microsoft a compelling choice if you want both safety and participation in the global tech economy.
Consistent income with capital appreciation
While the dividend yield may look modest at first glance, Microsoft has delivered strong total returns. Over the past 10 years, the stock has not only paid increasing dividends but also nearly 7x’d in value.
Your income increases with payout hikes, and the stock value typically rises as earnings grow. That’s a dual benefit—income today and growth for tomorrow. Compared to Indian fixed deposits or local dividend stocks, this combination is hard to match.
So, if you're aiming for long-term wealth creation in foreign currency, Microsoft fits right in with its blend of yield and appreciation potential.
Dividend reinvestment and compounding potential
Many international brokers allow Indians to reinvest dividends directly by using the Liberalised Remittance Scheme (LRS). With Microsoft's quarterly payouts, you can gradually buy more shares and benefit from compounding.
Think of it like a snowball—each dividend adds slightly more to your share count, which increases the next quarter’s payout. Over a 10-year horizon, reinvesting your Microsoft dividend stock income can significantly increase your overall returns.
Plus, dividend reinvestment reduces the impact of short-term fluctuations by averaging out your purchase price over time.
Now that you understand why Microsoft dividend stock holds long-term appeal, it's worth knowing when these payouts occur. Timing matters—let’s look at Microsoft’s dividend announcement and payment schedule next.
When does Microsoft announce and pay its dividends?
Understanding Microsoft’s dividend schedule
Microsoft follows a consistent quarterly dividend pattern. The company typically announces dividends during the second half of each quarter—February, May, August, and November. After the announcement, there are two important dates to note: the record date and the payment date.
The ex-dividend date usually falls 1-2 business days before the record date. You need to own MSFT shares before this ex-dividend date to be eligible for the upcoming payout. Payments are generally made about four weeks after the announcement.
For example, if Microsoft declares a dividend on May 14, the ex-dividend date might be May 15, and the payment might arrive around June 13. Microsoft’s official investor relations page and global trading platforms like Winvesta or Interactive Brokers will publish all dates ahead of time.
How Indian investors can align purchases
As an Indian investor, timing your purchase of MSFT stock dividends matters if you want to receive quarterly payouts. Buying after the ex-dividend date means you’ll have to wait at least three more months for the next one.
You don’t need to time every dividend, but if regular income is your goal, staying informed ensures you don’t miss out unnecessarily. Next, let’s answer some common questions that Indian investors ask about Microsoft’s dividend payments and returns.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
