Microsoft has announced a 10% increase in its quarterly dividend and a new $60 billion stock buyback program. The announcements reflect the company’s robust financial performance and its optimism about future growth prospects.
Microsoft dividend increase
The board of directors declared a quarterly dividend of $0.83 per share, representing an 8 cent or 10% increase over the previous quarter’s dividend. This change is effective for shareholders of record on November 21, 2024, with the dividend payable on December 12, 2024.
Stock buyback program
The new share repurchase program authorizes up to $60 billion in share repurchases, with no expiration date. This program replaces a similar $60 billion buyback program announced in 2021 and may be terminated at any time.
Annual shareholders meeting
In addition to these financial updates, the tech giant announced that its 2024 Annual Shareholders Meeting will be held virtually on December 10, 2024. Shareholders at the close of business on September 30, 2024, the record date, will be entitled to vote their shares. The meeting 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.
Financial performance and future growth
The company’s strong cash position has fueled these plans. As of June 30, 2024, the company’s cash reserves totaled $75.5 billion, and it generated a robust $23.3 billion in free cash flow during the fiscal fourth quarter, up 18% year-over-year. This growth came despite the company’s strategic investments in cloud and AI offerings.
The tech giant’s recent success can be attributed to its growing presence in the AI field. By integrating OpenAI’s AI technology into its products like Teams, Word, and Outlook, Microsoft has enhanced its business applications and solidified its position in the AI market.
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