MICROSOFT unveiled a new US$60 billion stock-buyback programme, matching its largest-ever repurchase authorisation, and raised its quarterly dividend 10 per cent.
The software company said shareholders as at Nov 21 will receive a quarterly dividend of 83 US cents a share, compared with the current 75 US cents. The share repurchase agreement, which has no expiration date, replaces a US$60 billion buyback programme announced in 2021.
Microsoft, the world’s second-most valuable company, has benefited in the past several years from market exuberance for artificial intelligence (AI). The software maker has infused its product line with AI technology from partner OpenAI and has touted the tools’ ability to augment its business applications, such as Teams, Word and Outlook. Microsoft earlier Monday (Sep 16) released a new range of AI tools.
The shares rose less than 1 per cent in extended trading after the buyback was announced after closing at US$431.34 in regular trading on Monday. The stock has gained 31 per cent in the past year.
Microsoft had US$75.5 billion in cash and equivalents as at Jun 30, according to data compiled by Bloomberg. Free cash flow in the fiscal fourth quarter was US$23.3 billion, the Redmond, Washington-based company said in July, “up 18 per cent year-over-year reflecting higher capital expenditures to support our cloud and AI offerings”. BLOOMBERG
