Meager Income

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Microsoft Increases Dividend by 25%!

Posted on | September 20, 2011 | No Comments

Dividend seeking investors may want to take another look at Microsoft Corp. The stock price has been stuck in a narrow trading range for several years now. However, in an effort to boost the stock price, the board of directors has just announced their decision to increase the quarterly dividend to 20 cents a share. This is a 25% increase. At the closing price of $26.98 a share the yield is just below 3%.  Although I don’t agree with their decision to spend $40 billion to buy back their stock (I think it should be spent on dividends instead), they still produce plenty of cash.

Besides the Kinect, the xbox 360 add-on that has been big hit with consumers, Microsoft will also be releasing a new version of windows 8 for PCs and a variant for mobile phones.  I’ve started to see positive reviews on the new operating system.

Although, I am continuing to hold on to the shares, I’m also trying set up covered calls to earn a little more meager income from my investment.

So, if you invest in dividend stocks you should consider buying MSFT before Nov 15 when it will begin trading ex-dividend.  The dividend will be payable to shareholders of record on Nov 17th, 2011.  The dividend will be paid on Dec 8, 2011 so you’ll have an extra few bucks to spend on Christmas gifts this year!


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