Microsoft announced Tuesday that its board of directors has approved a new share buyback program for up to $40 billion, replacing a previous $40 billion repurchase program that is set to expire at the end of this month.
Microsoft also revealed plans to raise its quarterly dividend from $0.23 to $0.23, an increase of 22%. The news comes two days before Microsoft is scheduled to hold a meeting with financial analysts.
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CHART: Here’s the history of Microsoft’s dividends, from FY05 to now pic.twitter.com/E1QJseo7oJ— Microsoft News (@MSFTnews) September 17, 2013
Not surprisingly, investors responded positively to the news, sending Microsoft's stock up by as much as 2% in pre-market trading. The renewed buyback and dividend increase follow other recent notable initiatives at the company, including a massive reorganization and the shock announcement that longtime CEO Steve Ballmer would retire.
Microsoft has returned more than $150 billion to shareholders in stages to date. By comparison, Apple recently announced plans to return $100 billion to shareholders by 2015.