How much will Microsoft pay out in dividends in 2025?

Most investors were salivating Microsofthis (MSFT -0.14%) amazing growth story. And let’s be honest: With the company’s $3 trillion market cap, it’s hard not to. But a lesser-known benefit to watch for is the steady dividend reward for shareholders.

Microsoft declared its first shareholder dividend in 2003 and has treated shareholders to consistent dividend increases for nearly two decades. In September, the company stuck to its usual playbook by announcing another dividend hike. While the dividend yield is below 1%, which may not excite income-focused investors, this growth could lead to a bigger payout in 2025.

What will Microsoft pay in dividends in 2025?

Let’s take a quick look back to 2024. Microsoft paid a quarterly dividend of $0.75 per share in March, June and September. Then, on Sept. 16, the tech giant announced it would raise its quarterly dividend to $0.83 per share, which is scheduled to hit investors’ accounts in December. This increase brings the total annual dividend payment to $3.08 per share for 2024.

Let’s do the math. With 7.43 billion shares outstanding (according to Microsoft’s latest financial reports), the total dividend payout for 2024 amounts to $22.88 billion. Not too shabby.

Assuming Microsoft continues to pay $0.83 per share each quarter in 2025, the annual dividend payout would increase to $3.32 per share. If the number of shares remains the same, Microsoft’s total dividend payout would increase to about $24.67 billion.

A dividend increase and a share buyback can shake things up

Microsoft raised its dividend by more than 10% in September, and it wouldn’t be surprising if the tech giant did it again in 2025. Another increase could bolster its annual dividend for shareholders. Microsoft also recently announced a $60 billion share buyback program that could reduce the number of shares outstanding if buybacks begin in 2025.

There are some moving parts to watch. But if Microsoft continues its past dividend trends, you could be handsomely rewarded.