Microsoft lifts quarterly dividend to $0.98 per share

Microsoft's dividend increase follows a quarter in which it returned $10.2 billion through dividends and share repurchases, equivalent to roughly 11.3% of its $90 billion in quarterly revenue. That capital return came alongside Microsoft Cloud generating $59.3 billion and Azure revenue climbing 43%, underscoring the scale of the businesses funding both shareholder payouts and AI infrastructure.

The stock's slip to $492.76, even after the dividend hike, suggests investors are weighing the payout against the growth outlook. At that price, the shares sit 15.77% below the $585.03 GF Value estimate shown in the chart, a gap that may reflect uncertainty about how quickly AI and cloud investments translate into earnings. The dividend is a welcome signal of confidence, but Azure, AI demand and cloud monetization remain the much bigger forces determining where Microsoft's valuation goes next.