Want $1,000 in Dividend Income? Here's How Much You Have to Invest in Microsoft Stock
Microsoft has increased its quarterly dividend payout by nearly 11%, now at $0.83 per share, translating to an annual yield of around 0.8%. To earn $1,000 in dividends, an investment of approximately $37,000 is needed for about 302 shares. While not the highest-yielding stock, Microsoft's growth potential and consistent dividend increases make it an attractive option for long-term investors. Interested investors should purchase shares before the ex-dividend date on Nov. 21 to receive the next payout in December.
Microsoft (MSFT 0.35%) just gave investors a reason to smile by cranking up its quarterly dividend payout by nearly 11% in September. But this isn't exactly a surprise. Microsoft has been paying dividends since 2003 and has consistently upped those payouts for nearly two decades.
Granted, most investors tend to focus on Microsoft's impressive growth story and its big bets on artificial intelligence (AI) -- and that makes sense. But you might still be curious about just how much you can earn in dividends if you own this stock.
With a current dividend yield of around 0.8%, Microsoft is far from being the highest-yielding option out there. Still, it offers a steady stream of income alongside its growth potential.
Your first $1000 in dividend income from Microsoft
When investing in dividend-paying assets, a common milestone to shoot for is earning your first $1,000 in dividend income. Let's run the numbers for Microsoft.
Microsoft recently bumped its quarterly dividend from $0.75 per share to $0.83 per share. That comes out to $3.32 annually. To earn $1,000 a year in dividends, you'd need to own about 302 shares. At Microsoft's current share price of around $417, you'd need to invest about $126,000 to reach your goal.
Is it worth it? Maybe not if you're strictly chasing high yields. But if you're looking for long-term growth potential and steady dividend hikes, Microsoft could be worth considering. Its heavy investments in AI might pressure earnings now, but they could drive major growth down the road. Plus, with a market cap of over $3 trillion and a spot among the "Magnificent Seven," you'd own a stake in one of the largest companies in the world.
Do your research and listen to the earnings calls to get a sense of where Microsoft is headed. And if you want to lock in the next dividend payout, make sure to grab shares before the ex-dividend date on Nov. 21 to secure your quarterly check in December.