UPDATE 1-Microsoft raises dividend, sets new $40 bln share buyback
Sept 17 (Reuters) - Microsoft Corp raised its quarterly dividend by 22 percent to 28 cents per share and said its board had authorized a new share buyback program of up to $40 billion.
Microsoft shares rose about 1 percent in early trading on the Nasdaq on Tuesday.
The new share repurchase program, which has no expiration date, replaces a $40 billion program that was set to expire on Sept. 30.
The 5-cent increase in the quarterly dividend, worth about $400 million, is about 3 cents per share more than most analysts had expected. The dividend is payable on Dec. 12 to shareholders of record on Nov. 21.
The news comes just ahead of Microsoft's investor meeting on Thursday.
Microsoft has been undergoing a lot of change, with Chief Executive Steve Ballmer unexpectedly saying he would soon retire, just weeks after the company's results reflected dismal sales of its new Surface tablet.
Microsoft said this month it would buy Nokia's phone business and license its patents for 5.44 billion euros ($7.2 billion), a bold foray into mobile devices that also brings potential chief executive contender Stephen Elop back into the fold.