Microsoft Stock Hands Over $350 Billion To Shareholders

Core Insights - Microsoft has returned $368 billion to shareholders over the past decade through dividends and share buybacks, making it the second-largest capital return in corporate history after Apple [2] - The company's strong cash flows from its transition to cloud computing and SaaS models have enabled it to reward investors while investing in Artificial Intelligence [3] Financial Performance - Microsoft has achieved a revenue growth rate of 15.6% over the last twelve months and a 13.2% average growth rate over the last three years [8] - The company has a free cash flow margin of nearly 26.6% and an operating margin of 46.3% for the last twelve months [8] - The minimum annual revenue growth for Microsoft in the last three years was 7.5% [8] Capital Return Strategy - The combination of consistent dividend increases and strategic stock repurchases has enhanced Microsoft's earnings per share and maintained high investor confidence [3] - Dividends and share repurchases are seen as direct returns of capital to shareholders, reflecting management's confidence in the company's financial stability [4] Market Position - Microsoft, along with companies like Meta, is growing at a faster and more predictable rate compared to others, yet has returned a smaller proportion of its market cap to investors [5] - The total capital returned to shareholders as a percentage of current market cap appears inversely related to growth potential for reinvestments [5]