Microsoft Approves New $60 Billion Share Buyback Program and Increases Quarterly Dividend

In a significant move, Microsoft’s board of directors has approved a new share buyback program worth up to $60 billion, along with a 10% increase in the company’s quarterly dividend. This announcement was made on Monday, September 16, 2024.

The new share repurchase program, which has no expiration date, allows Microsoft to buy back shares from the market, potentially reducing the number of outstanding shares and increasing the value of remaining shares. This move is seen as a way to return value to shareholders and can also help stabilize or boost the stock price.

In addition to the share buyback program, Microsoft declared a quarterly dividend of $0.83 per share, reflecting an 8-cent or 10% increase over the previous quarter. The dividend is payable on December 12, 2024, to shareholders of record on November 21, 2024.

Microsoft has been investing heavily in artificial intelligence (AI) infrastructure, with a 77.6% rise in capital spending in the quarter ended June 30, largely due to AI-related expenses. The company has also restructured how it reports results for its business units, moving some search and news advertising revenue under the Azure cloud-computing unit.

The tech giant will hold its annual shareholders meeting on December 10, 2024. This meeting will be held virtually and will be hosted by key executives including Satya Nadella, chairman and chief executive officer; Amy Hood, executive vice president and chief financial officer; Brad Smith, vice chair and president; and Sandra E. Peterson, Microsoft lead independent director.

Microsoft’s decision to approve a substantial share buyback program and increase its dividend comes as big tech companies face investor pressure to show returns on their significant investments in AI and other technologies.

No direct quotes from Microsoft executives or other experts are provided in the sources, but the actions reflect the company’s commitment to shareholder value and its ongoing strategic investments in AI and cloud computing.

Sources:
[1] https://www.thehindu.com/sci-tech/technology/microsoft-approves-new-60-billion-share-buyback-program/article68650441.ece
[2] https://in.marketscreener.com/quote/stock/MICROSOFT-CORPORATION-4835/news/Microsoft-approves-new-60-billion-share-buyback-program-47884904/
[3] https://news.microsoft.com/2024/09/16/microsoft-announces-quarterly-dividend-increase-and-new-share-repurchase-program-3/
[4] https://nationaltechnology.co.uk/Microsoft_board_approves_new_60_billion_share_buyback_program.php
[5] https://economictimes.indiatimes.com/markets/stocks/news/microsoft-approves-new-60-billion-share-buyback-program/articleshow/113409080.cms
[6] https://www.reuters.com/technology/microsoft-approves-new-60-billion-share-buyback-2024-09-16/
[7] https://finance.yahoo.com/video/microsoft-approves-60-billion-share-114008844.html
[8] https://www.barrons.com/articles/microsoft-stock-buyback-dividend-32c54be3