Usually we don’t use “Magnificent 7” and “dividends” in the same breath, and for good reasons. Looking at the constituents, Tesla (TSLA) and Amazon (AMZN) don’t pay a dividend at all, while Meta Platforms (META) and Alphabet (GOOG) (GOOGL) initiated one only in 2024. Apple (AAPL) did initiate its dividend in 1985 but stopped the payouts in 1995. The iPhone maker re-initiated its dividends only in 2012, which was incidentally the same year when Nvidia (NVDA) also initiated its dividends.
However, Microsoft (MSFT) has the longest continuous streak of dividend payments among its Mag 7 peers and has paid one every year since 2003. The company is on the verge of becoming a Dividend Aristocrat, a pristine group that mostly comprises companies from energy, food, utilities, and other defensive sectors. MSFT has a dividend yield of 0.72%, which, while below that of the S&P 500 Index ($SPX), is by far the highest among the Magnificent 7 companies.
