Microsoft Pays Out More in Dividends Than It Spends Buying Back Stock. Here’s What That Does for Investors.
For years, Microsoft (MSFT -0.80%) spent more money buying back its own stock than it paid out in dividends. In fiscal 2021 (the year ended June 30, 2021), for instance, the software giant put $27.4 billion toward repurchases and $16.5 billion toward dividends.That mix has flipped.Microsoft’s fiscal 2026 annual report shows $27.0 billion of dividends declared against $16.7 billion of stock repurchased under the company’s buyback program.