REDMOND, Wash. (AP) — Microsoft is trying to lift its stock price with its largest dividend increase since it started making the quarterly payments seven years ago.
The change announced Tuesday will boost Microsoft Corp.'s dividend to 20 cents per share, a 25 percent increase from 16 cents per share. That topped a 23 percent, or 3 cents per share, increase made on the dividend a year ago. It's the sixth time the world's largest software maker has raised its dividend since it introduced an 8 cents-per share payment to shareholders in 2004.
Microsoft's dividend increases have been escalating while its stock has been badly lagging the performance of other major tech companies. The higher payments are aimed at giving investors another reason to buy Microsoft's shares.