On Monday, Microsoft (MSFT) revealed that its board of directors approved a $60 billion stock buyback program along with a 10% boost to its quarterly dividend. The tech giant will raise its dividend from 75 cents to 83 cents per share, payable on Dec. 12 to shareholders of record on Nov. 21. The company also announced its annual shareholders meeting for Dec. 10.
These moves come as Microsoft faces investor pressure to demonstrate that its heavy investments in artificial intelligence (AI) are yielding returns. In July, Microsoft told investors it plans to increase AI infrastructure spending to meet growing demand, which currently exceeds its capacity.
Earlier in the day, Microsoft also introduced several new AI features and updates to its Copilot AI assistant during its “Wave 2” event. Highlights include the general availability of Copilot in Excel, Copilot in OneDrive, and an email summarizing feature in Outlook.
Following the event, Jefferies analysts noted that Microsoft is a “top AI beneficiary,” citing early signs of strong adoption and enhancements to the user experience with Copilot.
In response to the announcements, Microsoft shares edged up 0.7% in extended trading Monday and have gained nearly 15% since the start of the year.