Microsoft Gives Shareholders a Gift

SAN FRANCISCO -- By raising its dividend Monday, Microsoft(MSFT Quote) tried to flag down investors looking for a good stock pick.

Microsoft boosted its quarterly dividend by 2 cents a share to 13 cents -- double its typical once-a-year boost of a penny.

The dividend hike is part of a two-pronged way to return money to investors and lure back those disenchanted with a stock that has fallen by one-third in the past 10 months. The Redmond, Wash., company also authorized $40 billion in stock repurchases over the next five years.

Microsoft recently completed a previous $40 billion buyback program, making it "a natural time for the board to approve the new authorization," a company spokesman said in an email. ...