Microsoft Stock jumps on dividend increase, $ 60 billion buyout plan
Microsoft (MSFT) – Get the report from Microsoft Corporation (MSFT) shares rose on Wednesday after the world’s second-largest tech company announced plans to increase its quarterly dividend and buy back additional shares.
Microsoft announced that it would pay a dividend of 62 cents per share on its fourth quarter earnings, an 11% increase from its previous level, payable to shareholders of record on November 18, and announced plans for a $ 60 billion perpetual buyout.
The Redmond, Wash.-Based tech giant also named Brad Smith, its chief legal counsel, as vice president, making him the second-highest ranked employee behind the chief executive officer. Satya Nadella.
“This reflects the unique leadership role Brad plays for the company, our board and myself, with governments and other external stakeholders around the world,” said Nadella.
Microsoft shares rose 1.3% early in the session to switch hands to $ 303.26 each, a move that would extend the stock’s cumulative gain to around 36% and place it a touching distance from the record. of $ 305.84. reached on August 20.
Microsoft, which beat Street’s forecast in its record-breaking fourth quarter earnings report in July, has gained nearly 30% since hitting a six-month low in early April, with investors praising the The group’s market-leading cloud computing division amid the shift to home and hybrid work models of businesses around the world and the hyper growth of its new Azure business.
Azure, in fact, is expected to lead Microsoft’s near-term gains after a 51% increase in fourth-quarter revenue that led to a 21% increase in the group’s overall revenue to $ 46.2 billion.