Microsoft Boosts Dividend 22%, Authorizes $40 Billion Share Buyback

For the first time in a year, Microsoft will boost its quarterly dividend, from $0.23 to $0.28 per share, representing a 22% increase from the payout given in each of the four prior quarters, the company announced today.

The new quarterly dividend equates to a 3.4% dividend yield, based on Microsoft's Sept. 16 closing price of $32.80 a share.

Additionally, the Redmond, Wash.-based software and services provider announced its board of directors has approved a new, $40 billion stock repurchase program to replace the $40 billion stock buyback initiative that was set to expire on Sept. 30. The new buyback authorization has no expiration date.

Both the dividend increase and new stock buyback initiative, according to Microsoft CFO Amy Hood, as quoted in today's press release, "reflect a continued commitment to returning cash to our shareholders."

The new $0.28-per-share quarterly dividend is payable on Dec. 12 to shareholders of record on Nov. 21. The ex-dividend date is Nov. 19.



The article Microsoft Boosts Dividend 22%, Authorizes $40 Billion Share Buyback originally appeared on

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.