15 January 2026, Bavaria, Munich: The Microsoft logo and lettering can be seen on the Microsoft Deutschland GmbH headquarters building in Parkstadt Schwabing in Munich (Bavaria). Microsoft Corporation is the world’s largest software manufacturer and one of the largest companies in the world. (symbol image, symbol photo, illustration, symbolic photo, illustrative photo, theme image, general image, theme photo) Photo: Matthias Balk/dpa (Photo by Matthias Balk/picture alliance via Getty Images)
dpa/picture alliance via Getty Images
Over the past decade, Microsoft has returned a remarkable $368 billion to shareholders through dividends and share buybacks, marking the second-largest capital return in corporate history behind Apple.
This achievement stems from robust cash flows generated by the company’s transition to cloud computing and SaaS models, allowing it to reward investors while simultaneously funding large-scale pivots into Artificial Intelligence.
By combining consistent dividend increases with strategic stock repurchases, Microsoft has successfully enhanced earnings per share and maintained high investor confidence without sacrificing its long-term growth trajectory.
Let’s examine some figures to see how this payout capability compares with the biggest capital-return machines in the market.
MSFT Stock Returns
Trefis
Why is this important? Dividends and share repurchases are direct and concrete returns of capital to shareholders. They also reflect management’s trust in the company’s financial stability and its capacity to generate enduring cash flows. Furthermore, there are additional stocks exhibiting similar traits. Below is a list of the top 10 companies ranked by the total capital returned to shareholders through dividends and stock repurchases.
MORE FOR YOU
Top 10 Stocks By Total Shareholder Return
Top 10 Stocks By Total Shareholder Return
Trefis
For complete rankings, visit Buybacks & Dividends Ranking
What stands out here? The total capital returned to shareholders as a percentage of the current market cap appears inversely related to the growth potential for reinvestments. Companies such as Meta (META) and Microsoft (MSFT) are growing at a significantly faster and more predictable rate compared to others, yet have given back a smaller proportion of their market cap to investors.
This represents the downside of high capital returns. While they are appealing, you need to consider: Am I compromising on growth and solid fundamentals? With this in mind, let’s examine some statistics for MSFT. (See Buy or Sell Microsoft Stock for more information)
- Revenue Growth: 15.6% LTM and 13.2% last 3-year average.
- Cash Generation: Nearly 26.6% free cash flow margin and 46.3% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for MSFT was 7.5%.
- Valuation: Microsoft stock trades at a P/E multiple of 32.0
MSFT Stock Fundamentals vs. S&P Median
Trefis
The table provides a good overview of what one may expect from MSFT stock, but what about the risk involved?
MSFT Historical Risk
Microsoft is not exempt from significant declines as well. It dropped roughly 65% during the Dot-Com crash and nearly 58% in the Global Financial Crisis. Recent downturns demonstrate smaller losses, yet still significant—about 37% during the inflation shock, 28% during Covid, and 18% in the correction of 2018. Even with robust fundamentals, substantial pullbacks can occur when market conditions worsen.
The Trefis High Quality (HQ) Portfolio, encompassing 30 stocks, boasts a history of comfortably outperforming its benchmark, which includes the S&P 500, S&P mid-cap, and Russell 2000 indices. What is the reason for this? Collectively, HQ Portfolio stocks have delivered superior returns with lower risk when compared to the benchmark index; providing a smoother experience, as illustrated in HQ Portfolio performance metrics.