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This goes a long way toward its ability to pay hefty dividends to shareholders. On a per-share basis, Microsoft produced $2.20 per share in free cash flow over the last nine months, and paid just $0.84 per share in dividends during this time.
At MSFT's IPO, there were sold some 3.5 million share at a price of $21/share (reaching a peak that day at $29/share). I think MSFT had about 29 million total shares at that time, and that means that MSFT was just a ~$850 million dollar company back then.