Microsoft To Issue Dividend, Launch $40 Billion Share Repurchase Program
Microsoft shareholders haven't had much to cheer about lately, given the company's struggles to gain market traction with Windows 8 and its Surface tablet, a $900 million charge against earnings for unsold Surface inventory, and other issues.
This week the giant software company took steps to reward its loyal shareholders by paying a quarterly dividend of $0.28 per share and a new $40 billion share repurchase program to renew a repurchase initiative that ends Sept. 30.
Analysts said the move will present the company as a solid investment, despite the fact it's undergoing a massive restructuring and CEO Steve Ballmer is retiring next year. At the end of fiscal 2013 (June 30), Microsoft had more than $77 billion in cash, according to the company's Form 10-K filing with the U.S. Securities and Exchange Commission.