Microsoft Continues $40 Billion Share Repurchase Program; Increases Quarterly Dividend 22%

Breaking: Microsoft announces quarterly dividend increase of 22% and up to $40 billion share repurchase program.

Story is still developing, we’ll update accordingly. Stock is up about 1% currently. This sounds similar to a program Microsoft had in 2008.

Update:

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 board of directors also approved a new share repurchase program authorizing up to $40 billion in share repurchases. The new share repurchase program, which has no expiration date, replaces the previous $40 billion share repurchase program that was set to expire Sept. 30, 2013.

“These actions reflect a continued commitment to returning cash to our shareholders,” said Amy Hood, chief financial officer of Microsoft.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

 

Recall a very similar Press Release from 2011:

Microsoft Corp. today announced that its board of directors declared a quarterly dividend of $0.20 per share, reflecting a 4 cent or 25 percent increase over the previous quarter’s dividend. The dividend is payable December 8, 2011 to shareholders of record on November 17, 2011. The ex-dividend date will be November 15, 2011.

“Our strong financial results enable us to increase our dividend as part of our ongoing commitment to return capital to our shareholders,” said Peter Klein, chief financial officer of Microsoft.

The company is continuing its $40 billion share repurchase program approved by the board of directors in September 2008. The repurchase program, which expires on September 30, 2013, had approximately $12.2 billion remaining as of June 30, 2011.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutionsMicrosoft Corp. today announced that its board of directors declared a quarterly dividend of $0.20 per share, reflecting a 4 cent or 25 percent increase over the previous quarter’s dividend. The dividend is payable December 8, 2011 to shareholders of record on November 17, 2011. The ex-dividend date will be November 15, 2011.

Source: Microsoft

Will this be enough to quell activist investors for a time?  Does this mean Microsoft has decided not to purchase Blackberry?

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