Microsoft Ups Dividend, Plans to Sell Debt


Microsoft (MSFT) announced Tuesday that it was hiking its quarterly dividend to 16 cents a share from 13 cents a share -- a 23% increase.

The new dividend represents an annual dividend yield of 2.5%, TheStreet reported. Microsoft had not raised its dividend in two years.

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"This higher dividend, combined with our ongoing share repurchase program, reflects our commitment to returning capital to our shareholders and our confidence in the long-term growth of the company," CFO Peter Klein said in a statement.

The company's board also authorized it to issue as much as $6 billion of additional debt. The company is planning to sell debt to fund share repurchases and dividends, as much of its cash is held overseas.