To expand its program for returning capital to shareholders, the tech behemoth revealed two significant financial moves
According to the company, the board voted to both boost its quarterly dividend and implement a new stock buyback program. Microsoft raised the quarterly dividend rate by 11% to 62 cents from 56 cents previously. It is the 12th consecutive year when the company boosts the quarterly payout. It follows an 11% increase in 2019 and a 10% one in 2020.
The stock repurchase program has no specific expiration date and can be terminated at any time. It is valued at $60 billion.
Moreover, the board named President Brad Smith as vice-chair. On the matter, CEO and Chairman Satya Nadella stated: “This reflects the unique leadership role that Brad plays for the company, our board of directors and me, with governments and other external stakeholders around the world.”
Following the news, Microsoft stock price traded 1.5% higher.
Sources: barrons.com, investing.com