Founded in 1975 and based in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) develops, licenses and supports a wide range of products and services related to computing.
The company’s products include operating systems, server applications, productivity applications and business solutions, desktop and server management tools, software development tools, video games, and online advertising. MSFT also designs, manufactures, and sells hardware, including gaming consoles and PC hardware products.
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MSFT is a Dividend Contender with a streak of 15 years of dividend increases. It pays quarterly dividends in March, June, September, and December. The current dividend is 39¢ per share, so MSFT yields 2.49% at the recent share price of $62.74.
MSFT has an impressive DGR (dividend growth rate). The stock’s 10-year DGR is 14.8%, while its 5-year, 3-year, and 1-year DGR’s are 16.7%, 14.9%, and 14%, respectively.
Background
As mentioned previously, I’m taking more consolidation actions and bringing the holdings of four additional IRAs we own into the DivGro fold. When completed, DivGro will be distributed over five different accounts, one trust account at Interactive Brokers and four IRAs at FolioInvesting.
The first action I’m reporting is transferring my IRA from Wells Fargo to FolioInvesting. This is a traditional IRA opened in April 2008. I’m retaining two holdings, Wal-Mart Stores Inc (NYSE:WMT) and MSFT, and transferring the remaining account value in cash.
The goal of this post is to create a record of past transactions and dividends received for the MSFT position. I’ll also share my reasons for holding onto this MSFT position. See this article for the reasons I’m retaining my WMT position.
Transactions
I bought 60 shares of MSFT in February 2013 at an initial yield on cost (YoC) of 3.31%. Since my purchase, the total dividends received is $277, for a payout ratio of 16.6%:
| 2013-02-28 | Bought 60 shares of MSFT at $27.80 per share: | $ | 1,668.00 |
| 2013-06-13 | Dividend on 60 shares at 23¢ per share: | $ | 13.80 |
| 2013-09-12 | Dividend on 60 shares at 23¢ per share: | $ | 13.80 |
| 2013-12-12 | Dividend on 60 shares at 28¢ per share: | $ | 16.80 |
| 2014-03-13 | Dividend on 60 shares at 28¢ per share: | $ | 16.80 |
| 2014-06-12 | Dividend on 60 shares at 28¢ per share: | $ | 16.80 |
| 2014-09-11 | Dividend on 60 shares at 28¢ per share: | $ | 16.80 |
| 2014-12-11 | Dividend on 60 shares at 31¢ per share: | $ | 18.60 |
| 2015-03-12 | Dividend on 60 shares at 31¢ per share: | $ | 18.60 |
| 2015-06-11 | Dividend on 60 shares at 31¢ per share: | $ | 18.60 |
| 2015-09-10 | Dividend on 60 shares at 31¢ per share: | $ | 18.60 |
| 2015-12-10 | Dividend on 60 shares at 36¢ per share: | $ | 21.60 |
| 2016-03-10 | Dividend on 60 shares at 36¢ per share: | $ | 21.60 |
| 2016-06-09 | Dividend on 60 shares at 36¢ per share: | $ | 21.60 |
| 2016-09-08 | Dividend on 60 shares at 36¢ per share: | $ | 21.60 |
| 2016-12-08 | Dividend on 60 shares at 39¢ per share: | $ | 23.40 |
| | __ | ||
| Total capital invested: | $ | 1,668.00 | |
| Total dividends received: | $ | 277.00 | |
| Commissions/fees/taxes: | $ | 0.00 |
With this transfer, DivGro’s projected annual dividend income (PADI) increases by $93.60 and I’m adding $277 in past dividends to DivGro’s total dividend income.
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