From Yahoo Finance: 2025-04-07 14:27:00

Microsoft Corporation (MSFT) is compared to other profitable dividend stocks. Dividends have played a growing role in personal income, with dividends making up more than a third of the market’s total return. Investors are turning to dividend stocks during market turbulence, with Dividend Aristocrat Index showing resilience.

Analysts predict dividend stocks will outperform this year, with renewed interest in dividend-paying stocks. Dividend-focused ETFs have seen increased net inflows. Dividend strategies have proven to be a defensive play, showing less volatility and smaller declines compared to the broader market. Microsoft’s strong financial performance and dividend payouts make it a top choice for investors.

Microsoft Corporation (MSFT) ranks sixth on the list of most profitable dividend stocks. The company has a net profit margin of 35.43% and a strong dividend growth track record. Microsoft has increased its dividend payouts for 19 consecutive years. The recent investment in South Africa’s cloud and AI infrastructure highlights Microsoft’s commitment to digital transformation in emerging markets.

In Q2 2025, Microsoft reported a 12% year-over-year increase in revenue to $69.6 billion and a 10% increase in net income to $24.1 billion. Cloud revenue increased by 21%, while AI services revenue surged by 157%. Despite challenges in Azure’s growth, Microsoft remains financially robust, generating $22.2 billion in operating cash flow and ending the quarter with $17.4 billion in cash and cash equivalents. The company returned $9.5 billion to shareholders through dividends and stock buybacks. Investors are urged to consider deeply undervalued dividend stocks over MSFT for potentially higher returns in a shorter time frame. A dirt cheap dividend stock, trading at 10 times earnings and growing at double digit rates annually, shows promise. Check out the report for more details on this opportunity.

Read more: Is Microsoft Corporation (MSFT) the Most Profitable Dividend Stock to Buy Now?