Updated: October 27, 2015
Is Microsoft (MSFT) still a big dividend grower?
The software giant yields a respectable 3.1% today. That’s not enough income for my high single-digit income goals. Granted, it could be in a few years if Microsoft is able to continue its breakneck rate of dividend growth.
It’s boosted its payout at an annualized rate of 17.6% in the last five years. It also managed to hold its payout steady during the dark days of the Great Recession.
But can it keep up this pace? I’m concerned that it can’t. Let’s take a closer look using some of the benchmarks I use to pick stocks for my Hidden Yields research service.
Hitting a Dividend Ceiling?
If you’re wondering why I’m zeroing in on Microsoft’s dividend and not, say, its new(-ish) CEO or the products it rolled out last week (including two new smartphones and its first-ever laptop), the reason is simple: …