Microsoft (
MSFT) is increasing its quarterly dividend by 21.7%, from $0.23 to $0.28 per share, putting the company on track for its 11th consecutive year of dividend growth (
news release). The company also announced a new $40 billion share repurchase program. Given that I own 115 shares of MSFT, my quarterly dividend increases from $26.45 to $32.20 and my yield on cost becomes 4.14%. The extra $23.00 in annual dividend income raises my forward 12-month dividend total to $2,768. Thus far this year, there have been dividend increases for 24 of the 29 stocks in my portfolio.
This was pretty big news today. It was all over bloomberg and cnbc. They are extending their share buyback program as well. The dividend raise is huge I gotta say, 21% is substantial. I wish they paid in another month though because December has so many other great stocks to select from already. Gonna be a tough choice around then, I'll just have to see which ones are 'cheap' at the time.
ReplyDeleteCaptain: I was pleasantly surprised when I saw the news; it is a much larger dividend increase than I expected. Makes me wish I had bought more shares back when the stock was trading at around $27.
DeleteDGM - I have an equal weight position in MSFT, yet I am always mulling over selling it (bought it at about $30.50 a year ago, so it has returned 10+% in that time). It is one of the few stocks I own that I can't quite convince myself I am in it for the long run. Have to say the 22% dividend pop is making it a little easier to hold...
ReplyDeleteDining: I continue to think MSFT is a good investment, but it does require more monitoring than other companies. I am interested in seeing how the company does under a new CEO.
DeleteDGM,
ReplyDeleteCongrats! MSFT has turned out much better than I expected it to over the last couple years. Good for you for jumping on this train cheap. I regret not investing MSFT among a couple others (GIS, GPC, BDX). Dividend growth at its finest here!
Best wishes.
DM: Thanks! Even though MSFT has been more volatile than most of my other stocks, I have achieved a pretty good return on my investment. The large dividend increase is welcome news and makes me glad to be a shareholder.
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