Microsoft increases dividend as AI spending rises
Along with the announcement of a quarterly dividend increase to $0.83 per share, representing a 10% increase, the business revealed that its board had approved a fresh $60 billion share repurchase program. On December 10, the Tech Giant will have its annual shareholders’ meeting.
Microsoft reported a notable 77.6% rise in capital spending for the quarter that ended on June 30, amidst rising AI expenditures. Infrastructure for AI was mostly responsible for this growth. Despite its Azure cloud division’s recent slower performance, the firm expects that growth to rise in the second half of fiscal 2025.
There is pressure on major IT companies like Google and Microsoft to defend their investments in AI. Microsoft is one of the few businesses that has disclosed the financial contributions made by AI.
The stock saw a little uptick in aftermarket activity after the news, which helped to account for its 15% yearly gain.
In the wake of the announcement, the stock enjoyed a modest boost in aftermarket trade, adding to its 15% year gain. In addition to declaring a 10% increase in the quarterly dividend to $0.83 per share, the company disclosed that its board had authorized a new $60 billion share repurchase program. The Tech Giant will have its annual shareholders’ meeting on December 10.