Microsoft spends $60 billion to buy back treasury stock, increases dividend by 10%

In parallel, the American technology giant also announced a quarterly dividend of $0.83 per share, up 8 cents (equivalent to 10%) compared to the previous quarter.

Microsoft's annual shareholder meeting is scheduled for December 10, where investors will have the opportunity to discuss the company's long-term strategies, especially in the areas of cloud technology and artificial intelligence.

Microsoft said in July that it would increase spending in the current fiscal year to develop AI infrastructure. Its capital expenditures increased 77.6% in the second quarter of 2024, mainly on investments related to artificial intelligence.

Despite seeing slowing growth in its Azure cloud business, Microsoft predicts a strong recovery in growth in the second half of fiscal 2025.

Big tech companies like Microsoft and Google are now facing pressure from investors to demonstrate the profitability of billions of dollars worth of investments they are pouring into AI infrastructure.

Microsoft is one of the first tech giants to publicly share details about AI's contributions in quarterly earnings reports, while many other companies have yet to see the strong boost that investments in this technology can bring.

Last month, Microsoft restructured the way it reports its earnings by funneling some of its revenue from search and news advertising into its Azure cloud computing division to increase transparency and clarity in its financial reporting.

Microsoft isn’t the only company to embark on a massive stock buyback program. In May, Apple announced a record $110 billion share buyback program after reporting strong quarterly results.

Microsoft shares edged up in after-hours trading and are now up about 15% since the start of 2024.

Source: https://nhandan.vn/microsoft-du-kien-chi-60-ty-usd-mua-co-phieu-quy-tang-co-tuc-10-post831451.html