Microsoft (NASDAQ: MSFT) isn't a stock that dividend investors would normally select based on its yield. After all, at less than 1%, it's a below-average payout. Most investors target it for its growth prospects as it isn't all that exciting as an income-generating investment at the moment. But given its strong financials and its consistently increasing payouts in recent years, Microsoft could make for a viable dividend stock in the long run.

The company raised its dividend recently, and more rate hikes could be coming. Here's a look at how much annual dividend income Microsoft stock could generate for you in the future.

On Sept. 19, Microsoft announced it would be increasing its quarterly per-share dividend to $0.75, a 10% increase from its most recent payment of $0.68 a share. This bump-up would apply to the first quarterly payment of fiscal 2024. It's a relatively high rate of increase, but it's not uncommon for the tech company. Here's a look at Microsoft's annual dividend hike percentages over the past 10 years.

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Source Fool.com