Microsoft (MSFT) Caves to 23% Dividend Hike, Authorizes More Debt

Microsoft (Nasdaq: MSFT) announced a much anticipated dividend hike late Tuesday, in a move to return more of its cash hoard to frustrated shareholders. The software giant raised their quarterly dividend by 3 cents, or 23 percent, to $0.16 per share. On an annual basis the new dividend is $0.64, representing a dividend yield of 2.54 percent. In addition to the dividend hike, Microsoft's board of directors authorized up to $6 billion in additional debt made up of commercial paper and longer-term debt. Microsoft's new dividend is payable December 9 to shareholders of record on November 18. The ex-dividend date is November 16. The software giant also has $23.7 billion remaining under its September 2008 share repurchase plan. While the move will be welcomed by Microsoft shareholders, it is yet another sign that the company has limited growth initiatives to invest in.... Read more

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