Microsoft Raised Its Dividend. Here’s How It Compares To The Biggest S&P 500 Firms.
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Of the eight S&P 500 companies with a recent market capitalization of more than $500 billion, only
(NVDA) currently have a dividend. Investors would need to go down to the tenth-largest firm in the index,
(JPM), to find a yield greater than Microsoft at 0.8%. The bank, as is typical of financial stocks, yields a juicy 2.3%. Along with the dividend increase, Microsoft announced a new $60 billion stock repurchase program.
Apple, which boasts a $2.46 trillion market value, offers a yield at 0.6%. It most recently raised its quarterly dividend by 7% to 22 cents in April. The company also authorized an increase of $90 billion to its existing share buyback program at the time.
(BRK.B) don’t pay dividends. That group, excluding
Chip maker Nvidia is the next-largest company after Microsoft that offers a dividend, but it’s not much. Only through rounding up to the nearest 10th does the stock’s dividend yield hit 0.1%.
(V), with a recent $476 billion market value, yields 0.6%. On the market cap ranking, it’s followed by a major dividend uptick with JPMorgan Chase and
Johnson & Johnson
(JNJ) yielding 2.3% and 2.6%, respectively.
(WMT) rounds out the S&P 500’s top 12 with a 1.5% yield.
It isn’t surprising that the biggest blue-chip stocks don’t offer particularly appetizing dividend yields. Such stocks’ growth prospects and stability mean investors are willing to pay more per share. While the highest dividend yields can look attractive, they’re 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]