Microsoft Corp. (MSFT) has announced that it is raising its quarterly dividend payment to shareholders by 10% and undertaking a new $60 billion U.S. stock buyback program.
The Seattle-based software giant is increasing its quarterly distribution to $0.83 U.S. a share. The larger dividend is payable on Dec. 12 of this year to shareholders of record on Nov. 21.
At the same time, Microsoft announced a new $60 billion U.S. share repurchase program that has no expiration date.
Share buybacks reduce the amount of outstanding shares leading to an increase in the nominal value per share.
Microsoft made the unusual move of announcing the dividend increase and stock buyback program outside of its quarterly financial results.
In late July, Microsoft reported fiscal fourth-quarter results that largely matched Wall Street forecasts, leading to a slump in the company’s share price.
Year-to-date, Microsoft’s stock has risen 15%, trailing the 28% gain in the technology-laden Nasdaq Composite index.
Microsoft’s stock is up 2% on news of the dividend increase and share repurchases and currently trades at $438 U.S. per share.