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Microsoft to raise dividend

By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- Microsoft Corp. is ramping up its dividend for the first time in two years as it prepared to borrow billions of dollars.

Microsoft said late Tuesday that its board of directors agreed on a quarterly dividend of 16 cents per share, an increase of 3 cents or 23% over the prior quarter's dividend. The dividend is payable Dec. 9 to holders of record on Nov. 18.

"The higher dividend, combined with our ongoing share repurchase program, reflects our commitment to returning capital to our shareholders and our confidence in the long-term growth of the company," said Microsoft Chief Executive Peter Klein, in a press release.

The software giant also said that its board of directors authorized $6 billion worth of commercial paper and long-term debt.

Microsoft's (MSFT, Fortune 500) stock barely budged in pre-market trading. To top of page

Index Last Change % Change
Dow 16,102.38 -272.38 -1.66%
Nasdaq 4,683.92 -49.58 -1.05%
S&P 500 1,921.22 -29.91 -1.53%
Treasuries 2.13 -0.04 -1.85%
Data as of 12:28am ET
Company Price Change % Change
Bank of America Corp... 15.65 -0.29 -1.82%
Apple Inc 109.27 -1.10 -1.00%
Alcoa Inc 9.49 -0.08 -0.84%
Microsoft Corp 42.61 -0.89 -2.05%
General Electric Co 24.00 -0.51 -2.08%
Data as of Sep 4
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