Microsoft boosts dividend 11 percent, adds new directors
Microsoft Corp (MSFT.O) on Tuesday announced the smallest percentage increase in its quarterly dividend since 2009 and appointed new directors to replace two board members who decided not to seek re-election.
The increase, 11 percent to 31 cents per share, is in line with the software company’s revenue growth last fiscal year but half of last year’s 22 percent hike.
Financially conservative Microsoft has said it prefers to keep dividend increases in line with operating profit, which grew 4 percent last fiscal year.
Nevertheless, Chief financial Officer Amy Hood held out the possibility of more shareholder-friendly moves, saying that Microsoft’s board “continues to evaluate capital strategy options,” without saying what that might entail.
Microsoft’s new annual dividend would equal about 2.6 percent of that share price, the same as Intel Corp’s (INTC.O) 2.6 percent but higher than Apple’s 1.8 percent.
Microsoft also said on Tuesday that Teri List-Stoll, 51, CFO of Kraft Foods Group Inc (KRFT.O), and Charles Scharf, 49, chief executive of Visa Inc (V.N), will join the board on Oct. 1.
Microsoft has made several changes to its board recently as it undergoes a change in leadership under new CEO Satya Nadella.
Co-founder Bill Gates stepped down as chairman in February when Nadella was appointed CEO but remains on the board.
Source: Reuters
