Podcast
Questions and Answers
What is Microsoft's current dividend yield?
Which company ranks lower than Microsoft in dividend yield?
What is the size of Microsoft's new buyback program?
Who has announced a higher buyback program than Microsoft in 2023?
Signup and view all the answers
What is a common characteristic of hot technology stocks regarding dividends?
Signup and view all the answers
Which company has the largest buyback program announced in 2023?
Signup and view all the answers
What future trend is expected for Microsoft's capital expenditures?
Signup and view all the answers
What is the implication of Microsoft's new dividend on its ranking among dividend payers?
Signup and view all the answers
What is the projected free cash flow for Microsoft for fiscal 2025?
Signup and view all the answers
What growth rate is expected for Microsoft's free cash flow beyond fiscal 2025?
Signup and view all the answers
What is the purpose of Microsoft's new $60 billion program?
Signup and view all the answers
What will the projected free cash flow be enough to cover?
Signup and view all the answers
Who is the analyst that commented on Microsoft's financial outlook?
Signup and view all the answers
What percentage increase did Microsoft announce for its quarterly dividend?
Signup and view all the answers
What other company is mentioned in relation to buybacks in the context?
Signup and view all the answers
What is the new dividend payout per share announced by Microsoft?
Signup and view all the answers
What does the phrase 'companies are lousy market timers' imply about stock buybacks?
Signup and view all the answers
Which financial metric is Microsoft expected to achieve growth in for the coming years?
Signup and view all the answers
When will the new dividend payment be payable to Microsoft shareholders?
Signup and view all the answers
What does the new buyback program amount to?
Signup and view all the answers
Which analyst commented on Microsoft's capital allocation framework?
Signup and view all the answers
How many U.S. companies have announced larger buyback programs than Microsoft's latest?
Signup and view all the answers
What has the latest announcement from Microsoft suggested about its management and board's commitment?
Signup and view all the answers
How does Microsoft's implied yield compare to other companies on the Dow Jones Industrial Average?
Signup and view all the answers
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
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.
