From Nasdaq:

When tech giant Microsoft (NASDAQ: MSFT) began paying dividends in 2003, it was seen as a sign of the end of its high-growth era. However, it was really an indicator that the company’s leverage was primed to generate more free cash flow and earnings into the future.

Since declaring its first dividend in 2003, Microsoft has seen a sevenfold increase in sales and an eight-fold increase in net income. Moreover, if you had invested $1,000 in Microsoft back then, it would be worth $24,800 today, including dividends.

Microsoft continues to show strong momentum, consistently raising its dividend most years and maintaining a strong outlook due to its position as a leader in AI and other successful investments. Investors should consider investing in Meta Platforms (NASDAQ: META), which just initiated a dividend alongside its fourth-quarter earnings.

Finally, the lesson for investors in Microsoft’s story is that investing in a tech company when it declares a dividend can be a sound decision as the company begins leveraging fixed costs and growing earnings.



Read more: If You Invested $1,000 in Microsoft When It First Declared a Dividend, This Is How Much You’d Have Now