Here's How Many Shares of Microsoft You'd Need for $1,000 in Yearly Dividends
Key Points
Microsoft has paid a $0.91-per-share quarterly dividend since December 2025.
You'd need 275 shares of Microsoft for $1,000 in yearly dividend income.
The tech company looks undervalued after its recent rough patch.
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Tech stocks typically don't get much attention from dividend investors, as many of these stocks pay very little. Microsoft (NASDAQ: MSFT) is a notable exception. The tech giant paid its first dividend in 2003 and has increased its payout every year since 2004, making it one of the more underappreciated dividend stocks.
If your goal is earning $1,000 in annual dividends, you could reach it by buying Microsoft stock, though it would require a sizable investment.
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Microsoft pays a quarterly dividend of $0.91 per share, which adds up to $3.64 per year for each share you hold. Based on that amount, you'd need 275 shares for $1,000 in yearly dividend income. Microsoft stock is down quite a bit lately, but that many shares would still cost you about $105,000 as of March 20, 2026, when it closed at $382.
A six-figure investment in a single company is too steep for most investors, but a more reasonable amount could make sense to buy the dip on Microsoft. There are legitimate reasons behind Microsoft's decline -- it's spending heavily on artificial intelligence, Azure growth hasn't met expectations, and software stocks as a whole have been hit hard due to worries about AI -- but it's not all bad news.
Revenue grew 17% year over year to $81.3 billion in the second quarter of its 2026 fiscal year, which ended Dec. 31, 2025. Microsoft Cloud, in particular, was a highlight with $51.5 billion in revenue, a 26% year-over-year increase.
The market has probably overreacted to Microsoft's issues, making this a good entry point to invest. In addition to being one of the most proven tech stocks, investing in Microsoft also generates passive income that is likely to increase each year, given the company's track record of dividend growth.
Should you buy stock in Microsoft right now?
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Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy.
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