Microsoft Corporation (MSFT) - Moat Analysis

Track Record

20%

4.1/5

4.13

Just over two decades of consecutive raises with no recession-era stumble. Not yet a Dividend King by years paid, but the growth and resilience put it among the most reliable track records.

Sub-dimension

Summary

Score

Years Paying15%

3.00

How many consecutive years the dividend has been paid

3.00

Summary

Paying dividends since 2003 — over 20 years.

3.00

Years Growing30%

4.00

How many consecutive years the dividend has been raised

4.00

Summary

Over 20 consecutive years of dividend increases — Aristocrat-eligible.

4.00

Dividend Growth Track30%

4.50

Quality and consistency of historical dividend growth

4.50

Summary

Consistent ~10% CAGR over the last decade with no acceleration or deceleration concerns.

4.50

Recession Resilience25%

4.50

Behaviour through past recessions and downturns

4.50

Summary

Kept raising the dividend straight through 2008 and 2020 with no pause.

4.50

Safety

35%

4.8/5

4.80

Best-in-class safety. Payout ratio is comfortable, the balance sheet is in net cash territory, and cashflow generation is exceptional and resilient.

Sub-dimension

Summary

Score

Payout Sustainability35%

4.80

Capacity to cover the dividend with cash generated

4.80

Summary

4.80

Balance Sheet Strength25%

5.00

Solidity of the balance sheet against the payout commitment

5.00

Summary

5.00

Cashflow Resilience25%

4.80

Stability of free cashflow through the cycle

4.80

Summary

4.80

Profitability Trajectory15%

4.50

Direction of margins and operating efficiency

4.50

Summary

4.50

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