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Microsoft Stock Split: When It Might Happen Again And What You Need To Know

Mar. 09, 2021 9:00 AM ETMicrosoft Corporation (MSFT)120 Comments


  • If history is a harbinger, Microsoft may initiate a stock split soon.
  • Studies indicate companies that execute stock splits outperform the markets by wide margins.
  • Aside from the possibility of a stock split, there is much that recommends Microsoft as an investment.

Microsoft Corporation (NASDAQ:MSFT) is a growth dynamo.

The company’s software business churns out a reliable revenue stream while the cloud segment grows at a high double-digit pace. In the last quarter, video gaming pulled in record breaking revenue as lesser known divisions experienced torrid growth.

While the yield may not be to the liking of many in the DGI crowd, the dividend has more than quadrupled over the last decade. The company has a fortress financial sheet, and a variety of initiatives should continue to propel the shares higher.

Of course, the robust, sustained growth rates have the share price near 52 week highs. With that in mind, one might wonder if a stock split is just over the horizon. My research revealed it as a strong possibility. It also uncovered extensive studies indicating the shares will likely outperform the market, should management opt for a stock split.

Microsoft Stock Split History

Below is a record of each split with the closing price the day before the split followed by the closing price the day of the split, with the percent gain/loss.

Pre-split Post-split % gain/loss

9/18/87 2 for 1 $114.50 $53.50 -6.6%

4/12/90 2 for 1 $120.75 $60.75 .6%

6/26/91 3 for 2 $100.75 $68.00 1.24%

6/12/92 3 for 2 $112.50 $75.75 1.00%

5/20/94 2 for 1 $97.75 $50.63 3.59%

12/6/96 2 for 1 $152.87 $81.75 6.95%

2/20/98 2 for 1 $155.13 $81.63 5.24%

3/26/99 2 for 1 $178.13 $92.38 3.72%

2/14/03 2 for 1 $48.30 $24.96 3.35%

Source: Microsoft Investor Relations

Adjusted for inflation, the average price at split was $214.70. Discarding the anomalous 2003 split, the average price was $232.96. The highest inflation adjusted price was in 1999 at $279.66, the lowest (excluding 2003) was 1994 at $173.01.

With Microsoft currently trading at $226.73, that places today’s price at

This article was written by

Chuck Walston profile picture
Maximize your income with the world’s highest-quality dividend investments

As of 12/08/2022 I am rated among the top 2.8% of authors in terms of overall results. This is according to TipRanks, which provides a 63% success rate and an average 17.3% annual return for my articles. (I update this score on at least a quarterly basis for readers.)

I could be characterized as a safety first investor.  My primary focus is on dividend bearing stocks.  I seek a degree of safety in my investments by concentrating on companies with competitive advantages and strong balance sheets. 

I am a also value / buy and hold investor.   Since I require a discount in the share valuations of my investments, my  ratings are generally very conservative.  My valuation requirements, combined with the high quality companies that I often highlight mean many stocks I rate as a hold  perform well over the long term.   Readers should consider this when weighing my buy/hold/sell recommendations.  

I am a retail investor, with no formal training in investing.  

I am a graduate of the U.S Army Ranger school and a former member of the 1st Ranger Battalion and The Old Guard (U.S Army Honor Guard.) I am a retired law enforcement officer. I have approximately 20 years experience as a retail investor. 

Best of luck in your investments, Chuck

Analyst’s Disclosure: I am/we are long MSFT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have no formal training in investing. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. All relevant risks are not covered in this article. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision.

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