Microsoft Pays Out More in Dividends Than It Spends Buying Back Stock. Here's What That Does for Investors.
The buyback is now the smaller half of the capital return -- and all that buying moved the share count just 0.1% last fiscal year.
Overview
For years, Microsoft (NASDAQ:MSFT) spent more money buying back its own stock than it paid out in dividends. In fiscal 2021 (the year ended June 30, 2021), for instance, the software giant put $27.4 billion toward repurchases and $16.5 billion toward dividends.
That mix has flipped.
Details
Microsoft's fiscal 2026 annual report shows $27.0 billion of dividends declared against $16.7 billion of stock repurchased under the company's buyback program. Measured by the cash actually spent on each, dividends passed buybacks in fiscal 2024 and have been the bigger half of the company's capital return ever since.
Source
Originally published at www.fool.com.