This Magnificent Seven Stock Is on the Cusp of Becoming a ‘Dividend Aristocrat’

FomoAnxiety · 2026-04-06T21:40:12+00:00

Microsoft is nearing the status of Dividend Aristocrat, having increased its dividends for 23 consecutive years. With two more annual hikes, it will join an exclusive group. Analysts rate MSFT as a Strong Buy, anticipating significant growth.

FomoAnxiety

2026-04-06 21:40:12

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Microsoft MSFT -0.16% ▼ is on the cusp of becoming a Dividend Aristocrat, the only Magnificent Seven stock that is close to achieving the milestone.

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A Dividend Aristocrat is a company that has increased its dividend payout for 25 consecutive years or longer. Microsoft first paid a dividend to its shareholders in 2003 and has increased it for 23 consecutive years.

Two more annual rate increases and MSFT stock will become one of the newest Dividend Aristocrats among stocks listed in the benchmark S&P 500 index. No other mega-cap technology stock that is part of the Magnificent Seven cohort is close to attaining the Dividend Aristocrat designation.

Microsoft’s Dividend Growth

Analysts note that Microsoft has been growing its quarterly distribution to shareholders at a good pace. The company most recently announced a quarterly dividend increase in September 2025, raising its payout by 10%.

MSFT stock currently pays a quarterly dividend of $0.91, giving it a yield of 1%. Analysts say that the dividend is sustainable and expected to continue growing given Microsoft’s strong balance sheet and ample cash. At the end of 2025, Microsoft had free cash flow of $77.4 billion.

Is MSFT Stock a Buy?

Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 34 Buy and three Hold recommendations issued in the last three months. The average MSFT price target of $582.17 implies 56% upside from current levels.

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