Tech giant Microsoft has announced a new $60bn share buyback programme and hiked its quarterly dividend by 10 per cent.
This new shareholder cash return replaces Microsoft’s previous $60bn programme, which was launched in 2021, and has no set expiration date.
According to data from Birinyi Associates, the cash return is the third-largest repurchase scheme launched by US companies this year.
Only Apple, with a $100bn (£76bn) buyback, and Alphabet Inc., with $70bn (£53bn), have announced larger programmes. Nvidia and Meta announced $50bn (£38bn) buybacks this year.
Following the dividend increase, shareholders will receive 83 cents per share, up from 75 cents as of November 21.
However, Microsoft will still rank among the lowest-yielding stocks on the Dow Jones Industrial Average.
Its dividend forward dividend yield now stands at 0.15%.
Microsoft, currently valued at $3.2t (£2.4t), remains the world’s second-largest company behind Apple, which holds a valuation just south of $3.3t (£2.5t).
