Microsoft board boosts dividend by 22 pct
September 17, 2013 10:35 AM | 235 views | 0 0 comments | 6 6 recommendations | email to a friend | print
REDMOND, Wash. (AP) — Microsoft said Tuesday that its board approved a 22 percent increase in the company's quarterly dividend to 28 cents along with a new $40 billion stock buyback program.

The new dividend represents an increase of 5 cents over the world's largest software company's previous dividend. It will be paid on Dec. 12 to shareholders of record as of Nov. 21.

Meanwhile, the new stock buyback program has no expiration date and replaces Microsoft's previous $40 billion stock buyback program that was set to expire on Sept. 30.

Microsoft Chief Financial Officer Amy Hood said the moves reflect the company's continued commitment to returning cash to its shareholders.

The software company has made a number of big moves recently. Earlier this month, Microsoft announced a $7.2 billion deal to buy Nokia's troubled smartphone business in hopes of catching up with the shift toward mobile computing.

While Microsoft's software business remains profitable, it has come under pressure as more people move away from traditional desktops and laptops and toward mobile devices like smartphones and tablets.

In addition, Microsoft CEO Steve Ballmer, who negotiated the Nokia deal, recently announced plans to retire within the next year, admitting that the company needs a different leader to take it in a new direction.

Shares of Redmond, Wash.-based Microsoft Corp. rose 17 cents to $32.97 in morning trading. That takes the stock closer to its 52-week high of $36.43 set July 16. It traded as low as $26.26 last December.

.



Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides