This week, Microsoft unveiled the largest share buyback in its history, totaling $60 billion, alongside a 10% increase in its quarterly dividend. All investors holding Microsoft shares as of November 21 this year will be eligible to receive these benefits.
The quarterly dividend will rise from 75 to 83 cents per share. However, the share buyback program is not as straightforward. Microsoft essentially replaced its previous $60 billion buyback plan, introduced in 2021, with a new one that has no set expiration date. As one of the key investors in OpenAI and a major player in the artificial intelligence boom, Microsoft stands second only to Apple in market capitalization, with a modest gap of $82 billion, adds NIX Solutions.
Microsoft’s Share Performance and Financial Position
Since the beginning of the year, Microsoft shares have risen by 31%. Following the announcement of the buyback plan, their value increased by a further 1% after hours, closing the main trading session at $431.34 per share. As of June 30, the corporation held $75.5 billion in cash and highly liquid assets. Free cash flow for the quarter rose by 18% year-on-year, reaching $23.3 billion.
According to Microsoft representatives, the company is actively investing in cloud infrastructure and artificial intelligence systems, which continue to fuel its growth. We’ll keep you updated on any further developments.