Microsoft Raised Its Dividend. Here’s How It Compares To The Biggest U.S. Firms.
Microsoft earlier this week raised its quarterly dividend rate by 11%. The technology giant, worth north of $2 trillion, has a higher yield than its closest rivals in the stock market.
Of the eight S&P 500 companies with a recent market capitalization of more than $500 billion, only
JPMorgan Chase (JPM), to find a yield greater than Microsoft at 0.8%. The bank, as is typical of financial stocks, yields a juicy 2.3%. Along with the dividend increase, Microsoft announced a new $60 billion stock repurchase program.
|Company / Ticker||Recent price||Market Value (bil)||Calendar 2021 Expected EPS||Dividend Yield|
|Apple / AAPL||$149.03||$2,463.5||$3.86||0.6%|
|Microsoft / (MSFT)||304.8||2,290.7||8.38||0.8|
|Alphabet / GOOGL||2,888.6||1,931.00||101.57||0.0|
|Amazon.com / AMZN||3,475.8||1,760.30||53.05||0.0|
|Facebook / FB||373.9||1,054.2||14.16||0.0|
|Tesla / (TSLA)||755.8||748.3||5.02||0.0|
|Berkshire Hathaway / BRK.B||278.2||630.4||11.96||0.0|
|NVIDIA / (NVDA)||223.4||556.7||4.0||0.1|
|Visa / V||223.8||476.0||5.24||0.6|
|JPMorgan Chase / JPM||158.2||472.6||14.06||2.3|
|Johnson & Johnson / JNJ||165.4||435.5||9.72||2.6|
|Walmart / WMT||144.6||403.1||6.24||1.5|
Apple, which boasts a $2.46 trillion market value, offers a yield at 0.6%. It most recently raised its quarterly dividend by 7% to 22 cents in April. The company also authorized an increase of $90 billion to its existing share buyback program at the time.
Berkshire Hathaway (BRK.B) don’t pay dividends. That group, excluding
Johnson & Johnson (JNJ) yielding 2.3% and 2.6%, respectively.
It isn’t surprising that the biggest blue-chip stocks don’t offer particularly appetizing dividend yields. Such stocks’ growth prospects and stability mean investors are willing to pay more per share. While the highest dividend yields can look attractive, they’re often too good to be true. Sometimes a cheap stock is cheap for a reason, especially if its dividend is vulnerable to cuts.
Write to Connor Smith at [email protected]