Shares of software company soared almost 30% so far this year, accelerating twelve months gains to 50%. Microsoft stock price currently trades around $200, down from a 52-weeks high of $230 a share. In addition to share price gains, Microsoft also rewards investors through hefty dividends. The company has raised dividends in the past seventeen consecutive years, with a dividend growth rate of more than 10% in the past five connective years. Microsoft has recently raised the quarterly dividend by 9.8% to $0.56 per share. Its financial numbers are backing dividends and share price gains. The company has generated $38 billion in fourth-quarter revenue, representing a growth of 12% year over year. Its Intelligent Cloud business, which is the largest revenue contributing segment, generated 17% year-over-year growth to $13.37 billion. “We are the only company with an integrated, modern technology stack – powered by cloud and AI and underpinned by security and compliance – to help every organization transform and reimagine how they meet customer needs,” Satya Nadella added. The company’s cash generation potential is strong enough to sustain dividend growth along with investments in growth opportunities. Its operating cash flows came in at $18 billion compared to dividend payments of only $3.8 billion. The company expects to generate double-digit top and bottom-line growth in fiscal 2021.
