announced a new share repurchase program and upped its quarterly dividend, sending shares of the software giant higher Monday.
The Redmond, Wash.-based company said its board of directors has authorized share repurchases up to $40 billion, a plan that will run through Sept. 30, 2013. Microsoft said the new repurchase plan comes as it has completed a previous $40 billion program.
Microsoft's board also increased its quarterly dividend to 13 cents a share from 11 cents. The next dividend is payable Dec. 11 to shareholders of record on Nov. 20. The ex-dividend date will be Nov. 18.
"These announcements illustrate our confidence in the long-term growth of the company and our commitment to returning capital to our shareholders," said Chris Liddell, chief financial officer of Microsoft.
Microsoft's board also approved debt financings from time to time of up to $6 billion. As part of the authorization, the company has established a $2 billion commercial paper program. Microsoft said it intends to use the net proceeds from any debt financings for general corporate purposes, which may include funding for working capital and stock buybacks.
The company said it has now returned more than $115 billion to shareholders through a combination of repurchases and dividends in the last five years.
Shares were lately up $1.22, or 4.9%, to $26.38 in the premarket. Among other tech companies,
was 0.3% lower, while
was up 0.3%.