Microsoft may raise dividend again
C|Net | at | by Mike
Shares in Microsoft rallied Monday, fueled by speculation that the software giant is mulling whether to raise its dividend again. According to reports in the Financial Times and its sister publication Les Echoes, Redmond, Wash.-based Microsoft is considering whether to pay a one-time, $10 billion dividend to shareholders, among other options. This would represent the largest single payout to investors ever made by a company.
On the other hand, Microsoft may decide to gradually increase its dividend, buy back its shares or acquire other companies in order to reduce its cash holdings of $46 billion, according to the reports. The company has come under pressure to share its cash hoard with investors as its growth has slowed. Microsoft is expected to settle on a plan by year's end.