Anytime there's a $40 billion transaction being announced, you take notice. That's the case for Microsoft, which set a massive stock buyback program along with a dividend increase on Tuesday, two days ahead of a highly anticipated investor meeting.
Microsoft is trying to make a pledge to shareholders that it will remain friendly by authorizing a $40 billion stock buyback program, replacing the prior $40 billion stock buyback plan set to expire at the end of this month.
It also boosted its quarterly dividend by 22 percent to 28 cents per share. On Thursday this week, shareholders will learn from Microsoft about its plans to replace Chief Executive Steve Ballmer, who is expected to retire within a year.
Microsoft is not alone, though; there are a host of other companies that could be candidates for dividend increases.
The Nasdaq Dividend Achievers Index looks at US companies that are traded on either the Nasdaq or NYSE and have raised their yearly dividend payments for at least the last 10 years.
Three of the stocks caught our eye.