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Microsoft raises quarterly dividend to 98 cents per share
The increase comes as Microsoft plans $175 billion in FY2027 capital expenditures and reported free cash flow fell 23% in its fiscal 2026 fourth quarter.
Microsoft authorized a dividend increase on Sept. 14, lifting its quarterly payout to 98 cents per share starting Dec. 10, 2026, up from 91 cents.
MarketBeat Ratings notes the hike marks 23 consecutive years of dividend increases, with the company two years away from being classified as a dividend aristocrat.
The dividend raise lands alongside heavy investment for AI infrastructure, with Microsoft reporting $41 billion in capital expenditures in its fiscal 2026 fourth quarter. The company also expects to spend $50 billion in CapEx in Q1 FY2027 and about $175 billion for all of fiscal 2027, a plan that has investors focused on free cash flow.
In that fiscal 2026 fourth quarter, free cash flow fell 23% to $19.6 billion as CapEx of $41 billion exceeded the quarter’s cash generation, even as operating cash flow rose 30% to $55.4 billion. For fiscal 2026 overall, free cash flow was roughly $67 billion, down about 6.5%, and Microsoft said it extended the useful life of certain data center buildings and reclassified some leases to reduce calendar 2026 CapEx estimates.