Microsoft Raises Its Dividend 10% and Announces $60B Stock Buyback Program

Key Takeaways

• Microsoft on Monday introduced a $60 billion inventory buyback program and a ten% enhance to its quarterly dividend.

• The strikes come as Microsoft faces strain to indicate its spending on synthetic intelligence (AI) is paying off.

• Microsoft unveiled new AI options at its “Wave 2” occasion Monday.

Microsoft (MSFT) stated Monday its board of administrators permitted a $60 billion inventory buyback program and a ten% enhance to its quarterly dividend.

The tech large stated it could increase its dividend to 83 cents per share from 75 cents, with the dividend payable Dec. 12 to shareholders of report Nov. 21. Microsoft stated its annual shareholders assembly will probably be held on Dec. 10.

The strikes by Microsoft come because the tech large faces strain to indicate its spending on synthetic intelligence (AI) is paying off for traders. Microsoft informed traders in July that it plans to ramp up its spending on AI infrastructure to satisfy demand, which it stated outpaces its capability.

Earlier within the day, Microsoft additionally unveiled a number of new AI options and upgrades to its Copilot AI assistant at its “Wave 2” occasion. A few of the updates included common availability of Copilot in Excel, Copilot in OneDrive, and an Outlook characteristic that summarizes emails.

Jefferies analysts stated in a observe Monday following the occasion that they view Microsoft as a “high AI beneficiary,” citing robust early indicators of Copilot adoption and enhancements to consumer expertise.

Shares of Microsoft edged 0.7% larger in prolonged buying and selling Monday following the information. They’ve gained shut to fifteen% because the begin of the 12 months by means of Monday’s shut. 

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