Microsoft Stock Rises On $60B Buyback Program, Dividend Hike: Retail Gets More Bullish

Microsoft Corp (MSFT) shares rose over 1% in Tuesday’s pre-market session, as of 7:04 a.m. ET, after the software giant raised its quarterly dividend and announced a new share repurchase program.

Microsoft’s board of directors declared a quarterly dividend of $0.83 per share, reflecting a 10% increase over the previous quarter. The dividend is payable Dec. 12, 2024, to shareholders of record on Nov. 21, 2024.

The tech major also announced a new share repurchase program worth $60 billion, adding that it has no expiration date but could be terminated at any time.

The company also notified that its 2024 annual shareholders meeting will be held on Dec. 10.

Following the announcement, retail sentiment on Stocktwits inched higher into the ‘bullish’ zone (63/100), with Microsoft ranking as the second most trending stock on Tuesday.

Bullish followers of Microsoft on Stocktwits are cheering the move.

The announcement comes as Microsoft shares rebound after hitting long-term support near $400. The stock reached a lifetime high of $468 in July and, despite a recent correction, seems to be gradually approaching its record high again.

However, the stock has dipped below its 200-day moving average twice over the last two months and any failure to breach the earlier highs may likely impact investor confidence.

Meanwhile, Microsoft made another important announcement on Tuesday. The firm, along with G42, has established two new centers in Abu Dhabi that will advance their collective Responsible AI goals. G42 is a technology holding group based in Abu Dhabi.

The tech major said the first center, co-founded and co-funded by G42 and Microsoft, with the endorsement of Abu Dhabi’s Artificial Intelligence and Advanced Technology Council (AIATC), will identify, develop and advance best practices and industry standards for the responsible use of AI in the Middle East and the Global South.  The second center will support AI projects that address key societal goals.

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