Microsoft to buy back S$50.4b of shares, boost dividend

NEW YORK — Microsoft, the world’s largest software maker, announced a new US$40 billion (S$50.4 billion) stock buyback and increased its dividend 22 per cent, seeking to reward shareholders at a tumultuous time for the firm.

The new repurchase programme, which has no expiration date, replaces another US$40 billion buyback plan that was due to lapse at the end of this month, Microsoft said yesterday. The company’s quarterly dividend will rise 22 per cent to 28 cents a share, payable to shareholders on Dec 12.

“These actions reflect a continued commitment to returning cash to our shareholders,” said Chief Financial Officer Amy Hood.

After struggling to keep up with rivals in the smartphone and tablet markets, Microsoft is retooling its strategy and seeking a new Chief Executive Officer. Mr Steve Ballmer, who has run the company since 2000, announced plans last month to retire when a replacement is found. The firm also agreed to buy Nokia’s phone business for US$7.2 billion, aiming to bolster its position in mobile devices. BLOOMBERG