(Bloomberg) -- Microsoft Corp. unveiled a new $60 billion stock-buyback program, matching its largest-ever repurchase authorization, and raised its quarterly dividend 10%.
The software company said shareholders as of Nov. 21 will receive a quarterly dividend of 83 cents a share, compared with the current 75 cents.
The share repurchase agreement, which has no expiration date, replaces a $60 billion buyback program announced in 2021.
Microsoft, the world's second-most valuable company, has benefited in the past several years from market exuberance for artificial intelligence. The software maker has infused its product line with AI technology from partner OpenAI and has touted the tools' ability to augment its business applications, such as Teams, Word and Outlook. Microsoft earlier Monday released a new range of AI tools.
The shares rose less than 1% in extended trading after the buyback was announced after closing at $431.34 in regular trading on Monday. The stock has gained 31% in the past year.
Microsoft had $75.5 billion in cash and equivalents as of June 30, according to data compiled by Bloomberg. Free cash flow in the fiscal fourth quarter was $23.3 billion, the Redmond, Washington-based company said in July, “up 18% year-over-year reflecting higher capital expenditures to support our cloud and AI offerings.”
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