Microsoft Increases Quarterly Dividend Amid Morgan Stanley's Positive Outlook
Microsoft (MSFT) has increased its quarterly dividend to $0.98 per share, an 8% rise from the previous quarter, which will be paid on December 10 to shareholders of record as of November 19. While this increase is slightly below Microsoft's five-year average hike of around 10%, Morgan Stanley analyst Adam Wood views it favorably within the company’s consistent pattern of aligning dividend growth with earnings expansion. Morgan Stanley has an overweight rating on Microsoft stock, projecting high-teens earnings per share (EPS) growth and a $600 price target. This implies approximately 22% upside from recent closing prices. The firm sees this as part of a durable total return profile for investors combining dividend yield with strong EPS growth. The market generally interprets the dividend increase as a sign of financial health, reinforcing Microsoft's appeal to both income and growth-focused investors ahead of its annual shareholders meeting on December 8.