Tech giant Microsoft (MSFT) has been in the news for some unfortunate missteps lately, including troubles with its mobile line and the recent departure of long-time CEO Steve Ballmer.
But dividend investors can have confidence in the generosity of MSFT in good times and bad. Although Microsoft has a relatively short history of dividends and buybacks, its track record is quite impressive.
Right now MSFT yields almost 3%, paying out 28 cents a quarter for about $9.35 billion in annual dividends.
Microsoft also is a stock buyback leader, authorizing $40 billion this year to replace a previous $40 billion authorization. Across the last decade, Microsoft has repurchased about $110 billion in MSFT stock.
There’s no guarantee that stock buybacks alone can prop up the company if it continues to struggle evolving in a post-PC age … but if you’re in MSFT because of the income potential, have confidence in the generosity of Microsoft.