REDMOND, Wash. - Microsoft Corp (NASDAQ:MSFT). announced on Tuesday that its board of directors has approved a quarterly dividend of $0.75 per share. This dividend is scheduled to be paid on September 12, 2024, to shareholders who are on record as of August 15, 2024. Additionally, the ex-dividend date, which is the cutoff for eligibility to receive the upcoming dividend, is set for August 15, 2024.
The declaration of the dividend follows Microsoft's ongoing efforts to return value to its shareholders. The technology giant, known for its extensive range of AI-powered platforms and tools, continues to focus on broadening the accessibility of AI technologies. Emphasizing responsible deployment, Microsoft aims to empower individuals and organizations globally to achieve more through the innovative use of technology.
Shareholders looking to receive this dividend must hold their shares before the ex-dividend date, as any transactions on shares after this date will not qualify for the dividend payment. Dividend payments are a way for companies like Microsoft to distribute a portion of their earnings back to their shareholders, and they are typically decided by the company's board of directors.
This financial event is part of Microsoft's regular practice of paying quarterly dividends to its investors. Microsoft, listed on the Nasdaq with the ticker symbol MSFT, has a history of consistent dividend payments, reflecting its stable financial position and commitment to shareholder returns.
In other recent news, Apple Inc (NASDAQ:AAPL). has reclaimed its position as the world's most valuable company, surpassing Microsoft Corp. in market capitalization. This development was catalyzed by the company's announcement of new artificial intelligence (AI) capabilities and software updates for its products, which analysts suggest could boost iPhone sales. Furthermore, Apple's earnings report in May exceeded market expectations, which coupled with a record share buyback plan valued at $110 billion, mitigated earlier concerns about the company's stock performance.
In a parallel development, Taiwanese semiconductor company MediaTek is developing an Arm-based chip for Microsoft's Windows operating system, set to be used in a new line of AI laptops. This move places MediaTek as a significant player in the PC market currently dominated by Intel (NASDAQ:INTC). The chip is expected to be released after the expiration of Qualcomm (NASDAQ:QCOM)'s exclusive deal to provide chips for Windows laptops, which ends in late 2024.
Meanwhile, the United States Department of Justice and the Federal Trade Commission (FTC) are scrutinizing the competitive dynamics within the AI industry, particularly the business practices of major players like Nvidia (NASDAQ:NVDA), OpenAI, and Microsoft. This scrutiny could potentially lead to investigations into these companies. Furthermore, the FTC and the Justice Department have finalized an agreement to launch antitrust investigations into the activities of Microsoft, OpenAI, and Nvidia in the AI sector.
InvestingPro Insights
Microsoft's recent announcement of its quarterly dividend reflects its stable financial health and commitment to rewarding shareholders. This commitment is underscored by Microsoft's impressive track record, as highlighted by InvestingPro Tips that indicate the company has raised its dividend for 18 consecutive years and has maintained dividend payments for 22 consecutive years. Such a consistent history of dividend growth is a testament to the company's robust cash flow management and financial discipline.
On the valuation front, Microsoft's market capitalization stands at a staggering $3.28 trillion USD, reflecting its massive scale and influence in the technology sector. However, it's also trading at a high P/E ratio of 38.16, suggesting that investors are willing to pay a premium for the company's earnings. This premium could be justified by the company's solid revenue growth, which was 13.97% over the last twelve months as of Q3 2024, and its operating income margin of 45.04%, indicating strong profitability.
For investors and potential shareholders considering Microsoft as an investment, it's worth noting that the company's stock trades near its 52-week high, with a price percentage of 99.47% of the high. This could signal market confidence in Microsoft's future prospects. Additionally, for those seeking further insights, there are 17 additional InvestingPro Tips available on InvestingPro, which can be accessed with an exclusive offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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