|Published : 21 Sep 2016, 12:02:58 | Updated : 21 Sep 2016, 14:11:23|
Cash-rich Microsoft announces to buy back $40 billion of its own shares
US software giant Microsoft Corp. plans to buy back $40 billion worth of its shares.
The firm did not say how long the repurchase scheme would last. Its previous buyback, also worth $40 billion, was announced in September 2013 and is due to be completed by the end of the year, reports BBC.
Share buybacks tend to support a company's share price and are popular with investors.
Microsoft on Tuesday also announced that it was raising its quarterly dividend by 8 per cent, to 39 cents a share.
Microsoft shares rose 1 per cent in after-hours trading.
Earlier this year Microsoft announced its biggest ever acquisition - the purchase of the professional networking website LinkedIn - for just over $26 billion in cash.
That was considered a high price for LinkedIn, which reported an annual loss of $166m.
Microsoft chief executive Satya Nadella said it was part of Microsoft's transformation into a cloud computing business, providing a range of professional services to clients - including a social network to connect them to each other.