Microsoft (MSFT) Raises Its Dividend 8%. Does AI Spending Change the Investment Case?

Microsoft Corporation (NASDAQ:MSFT) continues to demonstrate its commitment to returning capital to shareholders even as it ramps up spending on cloud computing and artificial intelligence. On September 15, the company's board approved a quarterly dividend of $0.98 per share, representing an 8% increase from the previous quarter. The dividend, which is payable on December 10, extends a long-standing record of dividend increases that spans over 20 years. The company has raised its dividend steadily from $1.56 a share in 2017 to $3.64 for fiscal 2026. The strong dividend track record is supported by strong recurring cash generation.