Microsoft raises dividend 23 percent to 16 cents

September 22, 2010

(AP) -- Microsoft Corp. said Tuesday it is raising its quarterly dividend for the first time in two years in a move that will return more of the software maker's nearly $37 billion cash hoard to its shareholders.

The increase signals is feeling more confident that the economy won't lapse back into .

The severity of the last downturn prompted Microsoft to resort to the largest in its 35-year history while keeping its dividend unchanged for the longest stretch since it started making the quarterly payments to shareholders in 2004.

Tuesday's announcement marks the fifth time that Microsoft has raised its dividend.

With the latest increase, investors who own Microsoft stock as of Nov. 18 will be get 16 cents per share. That's a 23 percent increase from the 13 cents a share that Microsoft had been paying for the past eight quarters.

The new rate translates into an annual dividend yield of 2.5 percent, based on Microsoft's current market value. The company's shares fell 28 cents to close at $25.15 Tuesday before plans for the higher dividend were disclosed, then rose 19 cents in extended trading.

Microsoft's increase comes a week after Inc. - another technology heavyweight that's part of the bellwether Dow Jones industrial average - announced plans to pay a stock for the first time.

The earnings of both companies have been rising recently, helping them to stockpile more cash even as the global economy struggles to recover from the worst recession in more than 70 years.

Microsoft distributed $4.6 billion in shareholder dividends during its last fiscal year, which ended in June.

Explore further: Microsoft keeps dividend, opens investor question


Related Stories

Cisco to start paying a dividend by next summer

September 14, 2010

(AP) -- Cisco Systems Inc., the world's largest maker of computer-networking gear, said Tuesday that it would pay its first dividend by July, the end of its current fiscal year.

Soft PC sales send Microsoft profit down 29 pct

July 23, 2009

(AP) -- Microsoft Corp. said Thursday its profit in the last quarter plunged 29 percent because of weak computer sales, ending a fiscal year in which the software maker's revenue fell for the first time since the company ...

Microsoft feels more recession fallout, sales drop

April 23, 2009

(AP) -- Microsoft Corp. said Thursday its quarterly revenue fell from the previous year for the first time in its 23-year history as a public company, and its profit fell more sharply than Wall Street was expecting.

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.

Dutch unveil giant vacuum to clean outside air

October 25, 2016

Dutch inventors Tuesday unveiled what they called the world's first giant outside air vacuum cleaner—a large purifying system intended to filter out toxic tiny particles from the atmosphere surrounding the machine.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.