Report: Microsoft Mulls $10 Billion Dividend

Microsoft(MSFT Quote) was moving higher in premarket trading following a newspaper report in Europe that it is considering paying a one-time $10 billion cash dividend.

The Financial Times carried the story, citing reporting by its French sister publication, Les Echos. Microsoft wouldn't comment on the story.

The software maker recently instituted its first cash dividend, a nominal 8-cent annual payout that sends less than $1 billion out the door every year and results in a yield of less than half of one percent. The company is sitting on $46 billion of cash and has annual cash flow approaching $13 billion, causing a growing chorus of shareholders to urge a bigger annual dividend or a one-time payment such as the one mentioned in the FT story.

Microsoft shares were up 73 cents, or 3%, to $27.23.