Foundational Ai Stock

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Foundational Ai Stock

This Foundational AI Stock Pays Large Dividend

There are plenty of ways to make money from the US stock market. One way is to buy and hold blue-chip dividend stocks. According to research, investing in dividend stocks gives a higher annual return than non-paying stocks.

In general, people always flock to famous dividend stocks. However, things have changed, and now there are even AI stocks that are paying a healthy dividend. One such stock is Microsoft, and it doesn't need any introduction.

Microsoft Is Paying A Dividend For 21 Years

Microsoft stock has a yield of 0.73%. The firm has been raising its dividend yield for 21 years now. The company is paying around $27.05 billion in dividend payouts annually.

There's no doubt that legacy software like Office and Windows have already achieved most of their growth. But they still generate a lot of positive cash flow. This has enabled Microsoft to fund its AI adventure and new acquisitions.

Today, Microsoft is leading when it comes to AI applications. Ever since AI became the talk of the town, Microsoft's Azure cloud platform has also started to print a lot of money.

The sales from the Azure platform have increased by 30% yearly. The company has also integrated AI and LLM models into the Azure platform. This makes it easy for customers to access different AI applications from a single platform.

In terms of total spend, Microsoft Azure ranks at the #2 spot among cloud service providers. The sales growth during Q4 was recorded at 43%.

So, it is clear that Microsoft has successfully found new ways to make money besides Windows and Office software products.

By the end of FY2026, Microsoft had cash of $76.8 billion. This money is enough for Microsoft to continue funding its AI ambitions.

So, should you buy Microsoft stock? Yes, you can consider buying Microsoft stock for dividends. The growth prospects are also very strong, and you can expect a solid upside in the Microsoft share price as well.

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