Microsoft Raises Dividend by 22%; Authorizes a New $40B Share Buyback Program (MSFT)

Early on Tuesday, software giant Microsoft Corporation (MSFT) announced that its board of directors has approved a 22% dividend increase and a new $40 billion share buyback program.

Microsoft will now pay out a quarterly dividend of 28 cents per share, up from the previous quarterly payout of 22 cents per share. This dividend will be paid on December 12 to shareholders of record on November 21, with an ex-dividend date of November 19.

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Furthermore, the board of directors approved the new share repurchase program to replace the previous $40 billion share repurchase program that was set to expire on September 30. The new share buyback plan has no expiration date.

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

Microsoft shares were up 53 cents, or 1.61%, during pre-market trading on Tuesday. The stock is up 22.8% year-to-date.