Microsoft Approves $60 Billion Buyback, Raises Dividend

Microsoft Corporation has announced several significant financial decisions and updates in its latest press release. The tech giant's board of directors has approved a new share buyback program of up to $60 billion, demonstrating confidence in the company's future and potentially boosting shareholder value.

Additionally, Microsoft declared a quarterly dividend of $0.83 per share, representing a 10% increase over the previous quarter. This dividend will be paid on December 12, 2024, to stockholders of record as of November 21, 2024.

The company also announced its annual shareholders meeting, scheduled for December 10, 2024, which will be held virtually. Key executives, including CEO Satya Nadella and CFO Amy Hood, will host the event.

These financial moves come amid Microsoft's increased focus on artificial intelligence infrastructure. The company reported a significant rise in capital spending over the quarter ended June 30, largely attributed to AI-related expenses. This investment aligns with the growing pressure on big tech companies to demonstrate returns on their AI investments.

Microsoft's market capitalization has surpassed $3.2 trillion, with its stock price up 31% over the last 12 months and 14% year-to-date. The company reported strong financial results for its most recent quarter, with revenue increasing 15% to $64.7 billion and diluted earnings per share rising 10% to $2.95.

For the full fiscal year, Microsoft's revenue grew 16% to $245.1 billion, with net income increasing 22% to $88.1 billion. The company attributes its success to its focus on AI-powered platforms and tools, aiming to deliver innovative solutions to meet evolving customer needs.

In a related development, Microsoft has expanded its partnership with Palantir Technologies.