It hasn’t been but a few days since we talked about Microsoft (MSFT) and the company’s tremendous dividend growth potential in San Jose (see ).
We covered the software giant’s huge net cash position on the balance sheet and its significant free-cash-flow generating capacity. Microsoft’s Dividend Cushion ratio stood at 3.3 times.
Well, today Microsoft raised its quarterly dividend 16.1%, to $0.36 per share, or $1.44 on an annualized basis, translating into a 3.3% yield at the last closing price of $43.98 per share.
That’s a sizable increase, a nice yield, and we still believe shares are cheap. Here’s the press release: http://news.microsoft.com/2015/09/15/microsoft-announces-increase-in-quarterly-dividend/
There’s nothing quite like seeing the Dividend Cushion ratio in action! Microsoft remains one of the top holdings in the Dividend Growth Newsletter portfolio.