A dividend increase for my Vrijheid Fonds.
This week Microsoft (MSFT) announced an 8.3% increase in its quarterly. The dividend is raised from $0.36 to $0.39. The dividend pay date is December 8, 2016 to shareholders of record on November 17, 2016 (ex dividend November 15, 2016).
The new dividend amount represents an annualized dividend amount of $1.56 per share, up from $1.44. The dividend yield on current price is 2.75 %.
My Vrijheid Fonds consist of 32 shares of Microsoft, my annual dividends will increase by $3.26. For 2016 my dividends will increase by $ 0.82 after taxes.
My projected annual total amount from my shares of MSFT will be $40 (€35) after taxes.
Besides a dividend increase, MSFT announced a new $40 billion stock buyback, which is roughly 9% of the outstanding shares. The plan has no expiration date and adds to the existing $7.1 billion remaining on the previous repurchase plan on track for completion this year. I think this is good news because Microsoft follows through on proposed share buybacks.
This buy back could be a big tail wind for the stock price. The stock price rose sharply the last time MSFT had a buy back program. Will we see a similar rise? We just have to wait and see