Microsoft (MSFT) investors waiting on tenterhooks for months to find out what the company will do in its annual dividend review got their answer today: The company said it will raise the quarterly cash dividend to 20 cents a share, a 25% increase from 16 cents at latest.
The new rate starts with the December 8th payment to shareholders of record as of November 17th.
This payout will be far less than the hopes of some Microsoft holders who’ve called for a dramatic revamp of the company’s capital allocation policy. But, hey, it’s something, and its higher than the 23% increase last year and the 18% increase the year before that.
CFO Peter Klein remarked that Microsoft will continue to use the $40 billion share repurchase authorization granted by the board in 2008, of which $12.2 billion remains.
Microsoft shares are unchanged in late trading at $26.98 after declining 23 cents, or 0.9%, to $26.98 during the regular session.
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