Microsoft (MSFT) made significant announcements on Monday, unveiling a $60 billion stock buyback program and a 10% increase in its quarterly dividend, raising it from 75 cents to 83 cents per share. This dividend is set to be paid on December 12, with shareholders on record as of November 21 eligible for the payout. The company also confirmed that its annual shareholders meeting will take place on December 10.
These moves come as Microsoft faces increasing pressure to justify its substantial investments in artificial intelligence (AI). During its July earnings call, the company emphasized plans to accelerate spending on AI infrastructure due to surging demand, which has outpaced current capacity. At its recent “Wave 2” event, Microsoft introduced several AI-driven upgrades, particularly to its Copilot AI assistant, which will now be available in Excel, OneDrive, and Outlook, with new features such as email summarization.
Jefferies analysts responded positively, viewing Microsoft as a "top AI beneficiary," with promising early adoption of Copilot and improved user experiences. These strategic developments are expected to solidify Microsoft’s leadership in the AI space, providing long-term value for investors.
Following the announcement, Microsoft shares climbed 0.7% in after-hours trading, continuing a strong performance with a year-to-date gain of nearly 15%. The stock buyback program and dividend increase further signal the company's confidence in its future growth, particularly as it deepens its commitment to AI innovation.
These moves come as Microsoft faces increasing pressure to justify its substantial investments in artificial intelligence (AI). During its July earnings call, the company emphasized plans to accelerate spending on AI infrastructure due to surging demand, which has outpaced current capacity. At its recent “Wave 2” event, Microsoft introduced several AI-driven upgrades, particularly to its Copilot AI assistant, which will now be available in Excel, OneDrive, and Outlook, with new features such as email summarization.
Jefferies analysts responded positively, viewing Microsoft as a "top AI beneficiary," with promising early adoption of Copilot and improved user experiences. These strategic developments are expected to solidify Microsoft’s leadership in the AI space, providing long-term value for investors.
Following the announcement, Microsoft shares climbed 0.7% in after-hours trading, continuing a strong performance with a year-to-date gain of nearly 15%. The stock buyback program and dividend increase further signal the company's confidence in its future growth, particularly as it deepens its commitment to AI innovation.