A method for manufacturing a magnetic random access memory element having increased retention and low resistance area product (RA). A MgO layer is deposited to contact a magnetic free layer of the memory element. The MgO layer is deposited in a sputter deposition chamber using a DC power and a Mg target to deposit Mg. The deposition of Mg is periodically stopped and oxygen introduced into the deposition chamber. This process is repeated a desired number of times, resulting in a multi-layer structure. The resulting MgO layer provides excellent interfacial perpendicular magnetic anisotropy to the magnetic free layer while also having a low RA.