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

The new quarterly dividend equates to a 3.4% dividend yield.

By Tim Brugger – Sep 17, 2013 at 11:23AM EST

For the first time in a year, Microsoft (MSFT 0.13%) 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.

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Tim spends much of his day writing articles and content for The Fool and, not surprisingly, loves it! However, Tim still fancies himself a storyteller as well and will continue to pursue his passion for writing fiction. His first book, The Lives of Stupid People Volume 1 (The next, great American novel as you can tell from the title), was published in 2011, along with a couple award-winning short stories. Tim majored in business studies and marketing at the University of Oregon, remains an avid soccer player and crossword fanatic, and currently lives with his 3 children in Portland, OR.

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

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