Tuesday, December 18, 2012

Microsoft Boosts Div 23%; To Issue Up To $6B More In Debt

Microsoft (MSFT) this afternoon said its board has approved an increase in the company’s quarterly dividend rate to 16 cents, from 13 cents, an increase of 23%. The first payment at the new rate will be December 9, the holders of record November 18. The increase boosts the yield on MSFT shares to 2.5%, from 2.1%.

The company also said its board has authorized the issuance of up to $6 billion in additional commercial paper and long-term debt.

In a statement, CFO Peter Klein said that “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.”

The company noted that over the last 10 years through June 30 it has returned almost $170 billion to holders through dividends and buybacks.

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