Microsoft Pushes Dividends To 16 Cents

Software giant Microsoft has increased its quarterly dividend amount per share to 16 cents, a rise of 23 percent from the previous rate of 13 cents per share.

The move comes at a time when large technology companies are being pressurised to return some of the stashed cash back to shareholders.

Microsoft has also announced that its board had decided to issue additional debt of up to $6 billion, in order to accommodate the dividend and share repurchase payments.

The company's chief financial officer, Peter Klein, said in statement to The Street that “This higher dividend, combined with our ongoing share repurchase program, reflects our commitment to returning capital to our shareholders and our confidence in the long-term growth of the company.”

Microsoft also informed that it had paid dividends worth $170 billion in the past 10 years and the first dividend payment on the new rate will be made on December 9.

Other competitors, some of which are sitting on more than $40 billion worth of cash, have remained quiet on the issue of paying dividends to shareholders.