Key Takeaways
-
Microsoft on Monday announced a $60 billion stock buyback program and a 10% boost to its quarterly dividend.
-
The moves come as Microsoft faces pressure to show its spending on artificial intelligence (AI) is paying off.
-
Microsoft unveiled new AI features at its “Wave 2” event Monday.
Microsoft (MSFT) said Monday its board of directors approved a $60 billion stock buyback program and a 10% boost to its quarterly dividend.
The tech giant said it would raise its dividend to 83 cents per share from 75 cents, with the dividend payable Dec. 12 to shareholders of record Nov. 21. Microsoft said its annual shareholders meeting will be held on Dec. 10.
The moves by Microsoft come as the tech giant faces pressure to show its spending on artificial intelligence (AI) is paying off for investors. Microsoft told investors in July that it plans to ramp up its spending on AI infrastructure to meet demand, which it said outpaces its capacity.
Earlier in the day, Microsoft also unveiled several new AI features and upgrades to its Copilot AI assistant at its “Wave 2” event. Some of the updates included general availability of Copilot in Excel, Copilot in OneDrive, and an Outlook feature that summarizes emails.
Jefferies analysts said in a note Monday following the event that they view Microsoft as a “top AI beneficiary,” citing strong early signs of Copilot adoption and improvements to user experience.
Shares of Microsoft edged 0.7% higher in extended trading Monday following the news. They’ve gained close to 15% since the start of the year through Monday’s close.
Read the original article on Investopedia.
Read the full article here
