Microsoft Plans $40 Billion Stock Buyback and Raises Dividend -- Update
September 20 2016 - 5:54PM
Dow Jones News
By Josh Beckerman
Microsoft Corp. announced plans to buy back up to $40 billion in
stock and boost its dividend to 39 cents from 36 cents.
The tech giant said it is on track to complete by year's end the
current $40 billion repurchase program, which it established in
September 2013. The company's new $40 billion repurchase plan
represents about 9% of Microsoft's current market value of $442.7
billion.
Microsoft tends to announce dividend increases in September. The
8% increase announced Tuesday is a smaller rate of increase than
those of recent years. Last year, the company raised its quarterly
payout by 16% to 36 cents from 31 cents, after an 11% increase in
2014.
This year's increase raises Microsoft's dividend yield to 2.7%
from 2.3%. The dividend is payable Dec. 8 to shareholders of record
Nov. 17.
Shares of Microsoft, up 31% over the past year, rose 1.1% to
$57.48 in after-hours trading.
Strength in Microsoft's cloud business helped the company beat
sales and profit expectations in its fiscal fourth quarter, which
ended June 30, although revenue fell 7% to $20.61 billion.
In June, Microsoft agreed to buy professional social network
LinkedIn Corp. for $26.2 billion.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 20, 2016 17:39 ET (21:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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