Microsoft raised dividend, announced $60 billion buyback plan, little impact expected

From Nasdaq: 2024-09-22 06:32:00

Microsoft (NASDAQ: MSFT) has raised its quarterly dividend by 10% to $0.83 with a forward yield of approximately 0.75%. It also announced a new $60 billion buyback plan, the third in recent years, which may have little impact on the stock price given historical data.

The buyback plan represents less than 2% of Microsoft’s shares outstanding. The biggest driver of the company’s stock will likely be its ability to capture the AI opportunity, with Azure cloud computing business and GitHub segment both experiencing growth due to AI solutions.

Microsoft’s Copilot AI assistant, used in GitHub and Microsoft 365 platforms, offers potential revenue opportunities with add-ons of $30 a month per user. While the buyback plan may not impact the stock, the company’s innovation and AI capabilities are expected to drive long-term growth.

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Read more at Nasdaq: Microsoft’s Stock Buyback: History Says This Is the Likely Impact