Microsoft Corporations’s Dividend Payments Could Double Within 5 Years

Changes in the cloud continue to benefit MSFT and its shareholders

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors.

However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500.

Apple, Inc. (NASDAQ: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years.

With more than $200 billion in cash, I expect Apple to continue growing its dividend for years to come.

While those stats are impressive, another legendary tech stock offers a better dividend yield and growth. This global leader pays out a 2.4% yield, a 50% premium to Apple’s 1.6% yield. It has grown its dividend by 44% in the last three years, a 63% premium to Apple.

And finally, with just over $100 billion in cash on its balance sheet, I am expecting its dividend payment to grow more than 100% in the next five years.

No comments:

Post a Comment

Forget Rising Rates. 5 Great REITs To Buy Today

Some REITs have what it takes to outperform in this sort of environment Real estate investment trusts (REITs) have really take...