Microsoft Corp. unveiled a brand new $60 billion share buyback program, its largest buyback authorization ever, and increased its quarterly dividend by 10%.
The software company said shareholders will receive a quarterly dividend of 83 cents per share starting Nov. 21, up from the present 75 cents. The share repurchase agreement, which has no expiration date, replaces a $60 billion buyback program announced in 2021.
Microsoft, the world’s second Most worthy company, has benefited from the market dynamics in artificial intelligence in recent times. The software maker has equipped its product line with AI technology from partner OpenAI and advertised that the tools can expand its business applications equivalent to Teams, Word and Outlook. Microsoft announced on Monday released a brand new set of AI tools.
Shares rose lower than 1 percent in prolonged trading following the buyback announcement, after closing at $431.34 in regular trading on Monday. The stock has gained 31 percent over the past yr.
Microsoft had $75.5 billion in money and equivalents as of June 30, in response to data compiled by Bloomberg. Free money flow within the fiscal fourth quarter was $23.3 billion, the Redmond, Washington-based company said in July, “an 18% increase year over year, reflecting higher investments to support our cloud and AI offerings.”
(Updated with expanded trading in fourth paragraph.)
