Microsoft Corporation (NASDAQ:MSFT) Announces Increase in Quarterly Dividend and Authorizes $40 billion Share Repurchase Program

Technology giant Microsoft becomes a “Must Own Stock” after the news of increased dividend and a share repurchase program on Wednesday.

Microsoft Corporation (NASDAQ:MSFT) reported that the company board of directors have declared an increase in quarterly dividend and announced the share repurchase program. The company will be giving quarterly dividend up $0.51 per share, a 5 cent or 11% increase as compared to previous quarter’s dividend. The company’s 2019 share repurchase program includes $40 billion of stock buyback.

The quarterly dividend is payable from December 12, 2019 to the shareholders in record on November 21, 2019. While shareholders will be required to buy stocks before ex-dividend date of November 20, 2019. 

Experts are regarding Technology giant Microsoft as a “Must Own Stock” after the news of increased dividend and a share repurchase program on Wednesday. Microsoft stock touched its all-time high of $142.37 on next day of the announcement. Market capitalization of the company stands around $1.08 trillion.

Along with the dividend increase and a massive share repurchase program as good news for investors Microsoft’s achievement in earnings played a key role in increasing its stock value. The company announced its fourth quarter earnings in mid of July reporting a 12% increase in earnings per share on year-on-year basis at $1.37 and also beat the estimates. It’s revenue also increased to total $33.7 billion and exceeded the estimates by $920 million.

Microsoft’s popular cloud computing platform like Microsoft’s Azure cloud infrastructure business showing consistent growth with 64% quarterly increase shown in results. Other growth engines for the company include Microsoft’s Office 365 productivity software which grew 31% in 4th Quarter and cloud services like LinkedIn with 25% growth.

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