Only three U.S. companies have ever announced buyback programs bigger than Microsoft’s latest — though the new dividend yield is still low relative to those of fellow Dow components.

Microsoft's share repurchase program, which has no expiration date, replaces its previous $60 billion authorization announced four years ago. Meanwhile, investors also cheered the news that shareholders of record as of Nov. 21 will receive a quarterly dividend of 83 cents per share, up from the current 75 cents a share.

Microsoft on Monday announced a $60 billion stock buyback program and a 10% boost to its quarterly dividend. The moves come as Microsoft faces pressure to show its spending on artificial intelligence (AI) is paying off.

The tech giant declared a quarterly dividend of $0.83 per share, reflecting an 8 cent, or 10%, increase over the previous quarter. In July, the company said it will spend more this fiscal year on AI infrastructure. It reported a 77.6% rise in capital spending in the quarter ended June 30, largely due to AI-related expenses.

Microsoft announces a $60 billion repurchase and a 10% dividend increase, following a 31% increase in share price over the previous year. TakeAway Points: Microsoft announces a $60 billion stock buyback programme,

Microsoft is increasing its quarterly dividend 10% and announced a new $60 billion stock-buyback program, matching the size of a repurchase plan three years ago. Mandeep Singh of Bloomberg Intelligence has more.

Microsoft Corp. announced a 10% increase in its quarterly dividend and launched a new $60 billion stock buyback program, matching the size of its repurchase plan from three years ago.

Microsoft ($MSFT) is enhancing its shareholder value with a 10% dividend increase and a new $60 billion stock buyback program. These actions