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Microsoft announces $ 40 billion buyback

UNITED STATES, WASHINGTON (OBSERVATORY) — At the same time, the company increased quarterly dividends by 5 cents per share.

Microsoft’s board of directors has approved a new $ 40 billion stock repurchase program. The program has no time limit and can be terminated at any time, the company said in a press release.

In addition, the council decided to increase quarterly dividends by 5 cents to $ 0.51 per share. Thus, the growth compared to the previous quarter will be 11%.

Moreover, the payment of dividends instead of the one planned earlier on November 20 was postponed to December 12. All shareholders who bought the company’s securities before November 21, 2019 can count on payments.

Microsoft remains the largest company by market capitalization in the world: its valuation is close to a trillion dollars. In 2019, the shares of the IT giant grew by 36%.

The previous board program was approved by the Microsoft board of directors in September 2016. The amount was similar to the current one – $ 40 billion.

Microsoft began massively redeeming its own shares from the early 2000s. The company usually has an active buyback plan of $ 40 billion, which is updated after the implementation of the program.

In 2003, Microsoft also introduced dividend payments to shareholders and has since steadily increased them. As of June 30, according to Bloomberg, the company had $ 133.8 billion in cash and short-term investments.

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