Microsoft, the world’s largest software manufacturer, made two major announcements that made its shareholders really happy.
The tech company increased its quarterly dividend rate to 11%, from 56 cents per share to 62 cents. The company has also announced a $60 billion stock buyback program.
Microsoft has increased dividends for the 12th year straight. The news dividend rate would give the company a dividend yield of 0.8%.
Dividends and share buybacks will likely come from the company’s enormous cash positions. Microsoft has over $130 billion in cash on hand.
Microsoft is well past its early aggressive growth phase. As the company is maturing, it is likely to start giving an ever-greater share of cash to the shareholders. That’s something shareholders can appreciate. The shares traded up 1.68% on Wednesday.