Podcast
Questions and Answers
What is Microsoft's current dividend yield?
What is Microsoft's current dividend yield?
- 0.5%
- 0.77%
- 1.0%
- 0.7% (correct)
Which company ranks lower than Microsoft in dividend yield?
Which company ranks lower than Microsoft in dividend yield?
- Salesforce Inc. (correct)
- Visa Inc.
- Meta Platforms Inc.
- Apple Inc. (correct)
What is the size of Microsoft's new buyback program?
What is the size of Microsoft's new buyback program?
- $75 billion
- $70 billion
- $60 billion (correct)
- $50 billion
Who has announced a higher buyback program than Microsoft in 2023?
Who has announced a higher buyback program than Microsoft in 2023?
What is a common characteristic of hot technology stocks regarding dividends?
What is a common characteristic of hot technology stocks regarding dividends?
Which company has the largest buyback program announced in 2023?
Which company has the largest buyback program announced in 2023?
What future trend is expected for Microsoft's capital expenditures?
What future trend is expected for Microsoft's capital expenditures?
What is the implication of Microsoft's new dividend on its ranking among dividend payers?
What is the implication of Microsoft's new dividend on its ranking among dividend payers?
What is the projected free cash flow for Microsoft for fiscal 2025?
What is the projected free cash flow for Microsoft for fiscal 2025?
What growth rate is expected for Microsoft's free cash flow beyond fiscal 2025?
What growth rate is expected for Microsoft's free cash flow beyond fiscal 2025?
What is the purpose of Microsoft's new $60 billion program?
What is the purpose of Microsoft's new $60 billion program?
What will the projected free cash flow be enough to cover?
What will the projected free cash flow be enough to cover?
Who is the analyst that commented on Microsoft's financial outlook?
Who is the analyst that commented on Microsoft's financial outlook?
What percentage increase did Microsoft announce for its quarterly dividend?
What percentage increase did Microsoft announce for its quarterly dividend?
What other company is mentioned in relation to buybacks in the context?
What other company is mentioned in relation to buybacks in the context?
What is the new dividend payout per share announced by Microsoft?
What is the new dividend payout per share announced by Microsoft?
What does the phrase 'companies are lousy market timers' imply about stock buybacks?
What does the phrase 'companies are lousy market timers' imply about stock buybacks?
Which financial metric is Microsoft expected to achieve growth in for the coming years?
Which financial metric is Microsoft expected to achieve growth in for the coming years?
When will the new dividend payment be payable to Microsoft shareholders?
When will the new dividend payment be payable to Microsoft shareholders?
What does the new buyback program amount to?
What does the new buyback program amount to?
Which analyst commented on Microsoft's capital allocation framework?
Which analyst commented on Microsoft's capital allocation framework?
How many U.S. companies have announced larger buyback programs than Microsoft's latest?
How many U.S. companies have announced larger buyback programs than Microsoft's latest?
What has the latest announcement from Microsoft suggested about its management and board's commitment?
What has the latest announcement from Microsoft suggested about its management and board's commitment?
How does Microsoft's implied yield compare to other companies on the Dow Jones Industrial Average?
How does Microsoft's implied yield compare to other companies on the Dow Jones Industrial Average?
Flashcards
Microsoft dividend hike
Microsoft dividend hike
Microsoft increased its quarterly dividend by 8 cents, or 10%, to 83 cents per share.
Ex-dividend date
Ex-dividend date
The date that determines which shareholders will receive the dividend payment.
Microsoft buyback
Microsoft buyback
Microsoft increased its stock buyback program to $60 billion.
Capital allocation framework
Capital allocation framework
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Dow Jones Industrial Average (DJIA)
Dow Jones Industrial Average (DJIA)
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Dividend yield
Dividend yield
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Shareholder-friendly moves
Shareholder-friendly moves
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AI-driven investment cycle
AI-driven investment cycle
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Microsoft's Dividend Yield
Microsoft's Dividend Yield
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Microsoft's New Dividend
Microsoft's New Dividend
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Hot Tech Stocks
Hot Tech Stocks
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Microsoft Buyback Program
Microsoft Buyback Program
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Apple and Alphabet buybacks
Apple and Alphabet buybacks
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Chevron's Buyback Program
Chevron's Buyback Program
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Capital Expenditures
Capital Expenditures
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2021 Microsoft Buyback
2021 Microsoft Buyback
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Microsoft's Free Cash Flow
Microsoft's Free Cash Flow
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Dividend & Buyback Strategy
Dividend & Buyback Strategy
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Sufficient Cash Flow
Sufficient Cash Flow
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Stock Buyback Program
Stock Buyback Program
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Free Cash Flow Projection
Free Cash Flow Projection
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Fiscal Year 2025
Fiscal Year 2025
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Shareholder Returns
Shareholder Returns
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Analyst Opinion
Analyst Opinion
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Study Notes
Microsoft Dividend Hike and Buyback Program
- Microsoft increased its quarterly dividend by 8 cents (10%), to 83 cents per share.
- The dividend is payable December 12, 2024, to shareholders of record as of November 21, 2024.
- Microsoft also announced a $60 billion stock buyback program.
- This buyback program is the third largest announced in the US this year.
- The only companies with bigger buyback programs are Apple ($100 billion) and Alphabet ($70 billion).
- Microsoft's dividend yield is relatively low (0.7%) compared to other Dow components.
- Microsoft's dividend hike and buyback program are signaling continued, profitable growth and a commitment to free cash flow generation, particularly in the current, elevated AI-driven investment cycle.
- The move is viewed as a continuation of existing capital allocation strategies, as opposed to a significant change in direction.
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Description
Explore the recent announcements from Microsoft regarding an increase in its quarterly dividend and a significant stock buyback program. With a focus on profitability and growth, Microsoft's strategies reflect its commitment to cash flow generation amidst the ongoing AI investment cycle. Learn more about how these moves compare to other major firms.
