Over the last five years, the company's share price has nearly tripled, tacking on hundreds of billions of dollars to the company's market capitalization in that time. That means the company must distribute at least 90% of its profits to shareholders through dividends. All information provided on the Investing Daily network of websites is provided as-is and does not represent personalized investment advice. Microsoft is also a force to be reckoned with in gaming. Most noteworthy, dividend growth has been nice and steady in recent years. Microsoft doesn't overexert itself with its dividend. Between 2009 and 2010, revenue decreased a bit but operating income nearly doubled.
I wonder why do you post revenue as Net Income is more important. But before we get started, please note that this post includes an affiliate link. The combination of a rising stock price along with rising earnings has left the price to earnings ratio bouncing around 25 times over the past few years. And look at a company that impacts most of our lives on a regular basis. Leave a comment and let us all know! Software giant Microsoft has done well for its investors. Therefore, in order for a company to grow its dividends in the long run, it also needs to grow its business.
The point, though, is that Microsoft isn't a one-trick pony -- it has a lot going on, and it's in a strong position in just about every market segment in which it participates. After all, its Xbox platform is one of the most popular gaming platforms on the planet, with its overall gaming-related revenue -- which includes sales of hardware, software, and services --. Furthermore, it can make a big difference between companies that struggle and those who hold there own during a recession. In addition, Microsoft has a history of success with businesses that many of its consumer competitors do not have. Data for this Date Range May 9, 2019 May 8, 2019 May 7, 2019 May 6, 2019 May 3, 2019 May 2, 2019 May 1, 2019 April 30, 2019 April 29, 2019 April 26, 2019 April 25, 2019 April 24, 2019 April 23, 2019 April 22, 2019 April 18, 2019 April 17, 2019 April 16, 2019 April 15, 2019 April 12, 2019 April 11, 2019 April 10, 2019 April 9, 2019 April 8, 2019 April 5, 2019 April 4, 2019 April 3, 2019 April 2, 2019 April 1, 2019 March 29, 2019 March 28, 2019 March 27, 2019 March 26, 2019 March 25, 2019 March 22, 2019 March 21, 2019 March 20, 2019 March 19, 2019 March 18, 2019 March 15, 2019 March 14, 2019 March 13, 2019 March 12, 2019 March 11, 2019 March 8, 2019 March 7, 2019 March 6, 2019 March 5, 2019 March 4, 2019 March 1, 2019 Feb. A better dividend stock for the long haul Check out the latest. Even among business users, market share for the system is low.
With their strong retail platform, successful Kindle line, entry into cloud computing, and entry into digital distribution of media, all with varying degrees of success, investors are pretty bullish. In other words, all Microsoft has to do to provide a decent rate of return, is to not shrink. These stocks have yields of up to 10. At that rate of growth, profits and free cash flow would nearly quadruple over the next decade. Warning Sign: Microsoft Corp stock dividend yield is close to 10-year low. Information contained herein, while believed to be correct, is not guaranteed as accurate. The bottom line turned out to be even more impressive.
In contrast to another tech giant, , Microsoft has been more successful pushing into new products and services. Rather expensive, sure, but not to an unjustifiable degree. During the past 12 months, Microsoft Corp's average Dividends Per Share Growth Rate was 8. The growth rate is calculated with expontential compound based on the latest four year annual data. That said, I do have Microsoft on my watch list as a great candidate for an individual holding. During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Microsoft Corp was 62. Even without a new strategy for growth, the company is a strong cash generator and has proven its commitment to return cash to shareholders.
For quite some time the fund held Microsoft as its top holding. The number of shares decreased from about 10. Although Microsoft's yield is lower, the company is growing and has plenty of cash resources to keep increasing its dividend over time. Bing market share has grown a bit, but is still much less than Google. Microsoft pays out 40% of free cash flow in dividends. By investing in companies with stable and high dividend yields, investors can secure a relatively stable cash flow. Sounds like you purchased at a great time and I can understand the temptation to sell a little to rebalance the position.
If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk. This is because, with profits staying constant, continuous dividend increases will push the payout ratio up to 100% at some point. The growth rate is calculated with least square regression. Certainly I will have some thoughts on the Microsoft dividend. And the median was 0. They receive a percentage of the profits of all apps sold in their digital distribution network. But most quality, profitable companies like Microsoft trade at a pretty high valuation these days.
Then, at the first sign of business trouble, that company might be forced to cut its dividend payments. With the Nokia deal, they may over time reclaim some market share. We urge our readers to review the financial statements and prospectus of any company they are interested in. During the past 10 years, the average Dividends Per Share Growth Rate was 15. But for the tech sector, headwinds are brewing.