David I. Templeton

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On Monday, Microsoft (MSFT) announced it will increase the company's quarterly dividend by 18.18%. The new quarterly dividend will equal $0.13 per share versus $0.11 per share in the same quarter last year. In addition to the dividend increase, the company announced a $40 billion stock buyback program. It should be noted though the buyback program runs through September 30, 2013. The projected payout ratio is 24% versus 20% on the prior dividend rate of $0.44. The payout estimate is based on the projected June 2009 earnings estimate of $2.15.

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Microsoft dividend analysis tableclick to enlarge


Microsoft stock chart September 23, 2008

This article has 3 comments:

  •  
    Sep 24 11:13 AM
    It is about time - They are finally sharing a little more of their profits with the share holders; they should have increased it even more.
    Reply
  •  
    Sep 24 12:04 PM
    Sud

    Get real!! 2 cents does not do it.
    Reply
  •  
    Sep 24 08:42 PM
    this yield is a joke.
    Reply
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