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?

About the author  ⁄ Suril Amin

Suril is a scientist, journalist and obsessive Microsoft observer. He holds an advanced degree in Biotechnology with minors in Biochemistry, Microbiology, and Molecular Biology. Send him tips on twitter: http://www.twitter.com/surilamin

  • Willem Evenhuis

    they could have spent more on the nokia mobile division buy.

    • krayziehustler

      I wish they would have bought the entire Nokia.

      • Willem Evenhuis

        Really? Please explain.

        • Yuan Taizong

          Navteq is equal to Google, if Microsoft wants to win the G.P.S. war they should make Bing Maps a real competitor, which it may be in many features and applications, but the reality is that Bing maps is a collection of Google Maps-/Apple Map-/Yahoo! Maps-Clones, while Nokia HERE Maps are [SIC] one of the best mapping software in the world, and many consider it even better than Google Maps, if Microsoft had the full Navteq company they could’ve launched unprecedented innovations and features on Bing Maps.

          The Nokia Solutions Network could’ve complimented M.S.N. Dial-Up (ehh, you’re probably surprised that still exists, nou dat hoeft niet, in afgelegen Amerika is ‘r namelijk weinig breedband internet), but honestly, I personally wouldn’t see a future for N.S.N. under M.S.N. so Havteq would’ve been a great purchase, and Nokia’s many patents, but not the N.S.N.

      • Guest

        The rest of Nokia wasn’t for sale. They tried to get more of it (i.e. mapping).

    • Guest

      Why would you spend more to buy something you got for less?

  • Guest

    The dividend increase is only slightly more than some expected and the buyback is just a continuation of existing program, not an expansion. So no, I don’t think it’s going to quell activist investors. They’re still going to be pushing for major changes to increase focus and competitiveness, including the divestiture of non-core businesses. One weird thing is that Klein is quoted. I thought he left in June?

    • http://twitter.com/surilamin surilamin

      I noticed Klein was quoted too, thought it may have been a mistake. I’ve reached out to Microsoft to see if they’ll comment.

      • Guest

        Other sites are quoting Amy Hood, which makes more sense.

      • Guest

        Other sites are quoting Amy Hood, which makes more sense.

  • blah

    says 25% increase. title is wrong.

    • http://twitter.com/surilamin surilamin

      25% increase was in 2011.

  • blah

    OOPS. This is a press release from 2011…