Microsoft raises dividend 23 percent to 16 cents

Sep 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: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Cisco to start paying a dividend by next summer

Sep 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

Jul 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 ...

Microsoft feels more recession fallout, sales drop

Apr 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 ...

Recommended for you

China's Xiaomi raises more than $1 bn in funding

Dec 21, 2014

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

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.