Dividend Stocks Research Tools
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| Returns Rating |
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Company/Symbol
Microsoft Corporation (MSFT)
Yield: 0.68%
| Year | Dividend | Yield | Dividend
Growth |
|---|
| 2023 | $2.79 | 1.2% | 9.8% |
| 2022 | $2.54 | 0.8% | 10.4% |
| 2021 | $2.30 | 1.0% | 10.0% |
| 2020 | $2.09 | 1.3% | 10.6% |
| 2019 | $1.89 | 1.9% | 9.9% |
In 2023 dividends were paid in February, May, August, and November.
What Are Dividend Stocks and What's So Great About Them?
Dividend stocks are stocks of companies which have a proven track record of paying out a portion of their earnings to the stock holder in the form of dividends year after year. In the long run, about 40% of the stock market’s total return comes from dividends.
An additional benefit is that, under the current tax laws, qualified dividends are taxed at 15% instead of your standard income bracket rate which translates into more money in your pocket. Please be aware that the dividends paid by certain companies such as REITs, master limited partnerships, etc., do not qualify for this low rate. Their dividends are considered “unqualified” and hence taxed at your income bracket rate.
Some useful attributes when looking for great dividend stocks are annual dividend yield, growth in dividends, the total annual return (dividends plus stock price gain) and the volatility of the stock. Investors often fail to see the significance of “dividend growth.” A current dividend yield of 3% may not sound all that great. However, if the company increases its dividends year after year, in a decade the annual dividend yield on your original investment may now be 10% because your cost of owning the shares is fixed at the time you purchased them! Any stock price appreciation is an added bonus.