Microsoft’s Dividend Strength Amid AI Investments
Microsoft continues to demonstrate dividend resilience despite heavy AI infrastructure spending. Fiscal 2025 saw earnings of $13.64 per share, with dividends consuming just 24% of earnings—a conservative payout ratio for a cash-rich tech giant.
Free cash FLOW remains robust at $71.6 billion after accounting for $64.5 billion in capital expenditures. The company's dividend appeal lies not in yield, but in safety, consistent growth, and earnings scalability—qualities that make it a standout income stock.