On Tuesday, KeyBanc Capital Markets maintained its positive stance on Microsoft Corporation (NASDAQ:MSFT), reiterating an Overweight rating and a $490.00 price target. KeyBanc highlighted Microsoft's recent announcements, which included the general availability of Copilot Agents, a significant 60% quarter-over-quarter increase in Copilot customers, and a substantial Copilot seat deployment with Vodafone (NASDAQ:VOD).
Microsoft's board has authorized a new $60 billion share repurchase program, which will take the place of the previous $60 billion program initiated in September 2021. With approximately $10.3 billion remaining from the last program and $11.960 billion in repurchases completed in the fiscal year 2024, the company has decided to refresh its buyback initiative.
In addition to the repurchase program, Microsoft announced a dividend increase of 10%, raising the payout from $0.75 to $0.83 per share. This increased dividend is set to be paid on December 12th to shareholders on record as of November 21st.
KeyBanc has updated its financial model to reflect the higher dividend expectations starting in the second quarter of fiscal year 2025. However, the firm's share repurchase expectations remain unchanged at approximately $11.2 billion for the forecast years. This financial adjustment follows Microsoft's strategic moves to enhance shareholder returns through both share buybacks and dividend payments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.