On Tuesday morning, Microsoft (NASDAQ:MSFT) announced 10 per cent dividend hike. While the dividend yield is only 1.1 per cent, the 10 per cent hike is better than the current inflation rate of 8.3 per cent.

Shareholders of the company haven’t had much to cheer about this year as shares of the company remained down 27 per cent year-to-date.

Microsoft declared a quarterly dividend of USD 0.68 per share, or USD 2.72 annualised. This is a 10 per cent increase from the prior dividend of USD 0.62. The dividend would be payable on December 8, 2022, to stockholders of record on November 17, 2022, with an ex-dividend date of November 16, 2022.

The tech giant also announced the date for the 2022 Annual Shareholders Meeting, to be held on December 13, 2022. Shareholders, at the close of business on October 12, 2022, will be entitled to vote for their shares.

For the past 12 years, the company has grown its dividend every year and the quarterly dividend is up 8.5 fold from its first dividend of USD 0.08 per share in FY2004.

Founded by Bill Gates and Paul Allen in 1975, Microsoft Corporation is a multinational technology corporation which produces computer software, consumer electronics, personal computers, and related services. It is one of the Big Five US IT companies, alongside Apple, Google, Amazon, and Meta.