Microsoft has increased its dividend. Here’s how it compares to the biggest American companies.
earlier this week raised its quarterly dividend rate by 11%. The tech giant, worth over $ 2 trillion, outperforms its closest rivals in the stock market.
Of the eight S&P 500 companies with a recent market capitalization of over $ 500 billion, only
(NVDA) currently have a dividend. Investors should go down to the tenth largest company in the index,
(JPM), to find a higher return than Microsoft at 0.8%. The bank, as is typical of financial stocks, returns a hefty 2.3%. Along with the dividend increase, Microsoft announced a new $ 60 billion share buyback program.
|Company / Teletypewriter||Recent price||Market value (bill)||2021 EPS calendar expected||Dividend yield|
|Apple / AAPL||$ 149.03||$ 2,463.5||$ 3.86||0.6%|
|Microsoft / MSFT||304.8||2290.7||8.38||0.8|
|Alphabet / GOOGL||2 888.6||1,931.00||101.57||0.0|
|Facebook / FB||373.9||1054.2||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 claims a market value of $ 2.46 trillion, offers a 0.6% return. It recently increased its quarterly dividend from 7% to 22 cents in April. The company also authorized a $ 90 billion increase in its then existing share buyback program.
parent of google
(BRK.B) does not pay dividends. This group, excluding
and Tesla, have repurchased billions of shares over the past year, the method of returning capital to shareholders preferred by Berkshire CEO Warren Buffett.
Chipmaker Nvidia is the second-biggest company after Microsoft to deliver a dividend, but it’s not much. It is only by rounding up to the next 10th that the dividend yield of the stock reaches 0.1%.
(V), with a recent market value of $ 476 billion, reports 0.6%. On the market capitalization ranking, it is followed by a sharp rise in dividends with JPMorgan Chase and
Johnson & johnson
(JNJ) giving respectively 2.3% and 2.6%.
(WMT) rounds out the top 12 of the S&P 500 with a return of 1.5%.
It’s no surprise that the largest blue-chip stocks don’t offer particularly appetizing dividend yields. The growth prospects and stability of these stocks means that investors are willing to pay more per share. While the highest dividend yields may sound attractive, they are 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]