Microsoft bumps up dividend by 25 per cent
Redmond raises divvy to calm restless investors
Microsoft is giving its shareholders a 25 per cent boost in its December dividends, forking out $0.20 per share from its cash stockpile.
The hike follows a 23 per cent rise in dividend last year, as investors get increasingly irritated with the software giant's sluggish share price.
The stock hasn't changed much up or down from around the $27 mark in the last couple of years, while the company is currently sitting on cash and short term investments of $52.77bn.
In the 90s, Microsoft shares were skyrocketing, but now that their stock has become more sedate, Redmond needs to start thinking about handing out a regular, decent dividend to keep its stock-owners happy.
Investors have been agitating to get the dividend upped, following frustrations with the share price and Microsoft's position in the technology industry.
“Our strong financial results enable us to increase our dividend as part of our ongoing commitment to return capital to our shareholders,” Peter Klein, chief financial officer of Microsoft, said in the potted statement announcing the dividend boost.
Microsoft has been steadily losing its omnipotence in the tech world, in particular to Apple, and is now trying to claw its way into higher earnings on mobile devices with a variety of patent suits and the arrival of Windows 8, its OS for fondleslabs. ®