Microsoft Announces Dividend Increase, $40 Billion Stock Buyback

September 17, 2013
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Time for some financial news! Microsoft shares have been a tad stagnant these past few months, and the company has just announced that it will be making some moves in order to give them a bit of a positive boost.

The latest from Redmond on the matter is that the company’s board has approved a dividend increase of 22 percent, to go with the confirmation of a $40 billion stock buyback.

This should, in all likelihood, boost its share on the short term, and appease many shareholders.

Microsoft confirmed this in a press statement saying:

“Microsoft Corp. announced on Tuesday that its board of directors declared a quarterly dividend of $0.28 per share, reflecting a 5 cent or 22 percent increase over the previous quarter’s dividend. The dividend is payable Dec. 12, 2013, to shareholders of record on Nov. 21, 2013. The ex-dividend date will be Nov. 19, 2013.”

The payout was approved by Microsoft’s board of directors.

According to the company, the share purchase was set to expire on September 30, 2013, and CFO Amy Hood noted that that this new decision is a clear reflection that the company is committed to returning cash to its shareholders.

Nevertheless, this move is already having a positive influence — Microsoft was up by nearly 2 percent following this news, and the figure is set to climb even further as the market opens.

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Mike Johnson is a writer for The Redmond Cloud - the most comprehensive source of news and information about Microsoft Azure and the Microsoft Cloud. He enjoys writing about Azure Security, IOT and the Blockchain.

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