Microsoft Pays Out More in Dividends Than It Spends Buying Back Stock. Here's What That Does for Investors.

Key Points Microsoft's fiscal 2026 annual report shows $27.0 billion of dividends declared against $16.7 billion of stock repurchased under its buyback program. The company's share count ended fiscal 2026 about 1% lower than it was five years earlier. Earnings per share rose 123% over five years, and nearly all of that growth came from higher profits, not a shrinking share count. 10 stocks we like better than Microsoft › For years, Microsoft (NASDAQ:MSFT) spent more money buying back its own stock than it paid out in dividends. In fiscal 2021 (the year ended June 30, 2021), for instance, the software giant put $27.4 billion toward repurchases and $16.5 billion toward dividends. That mix has flipped. Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger.