Microsoft raises dividend and plans massive share repurchase

On Tuesday, Microsoft made a 22% raise in its dividend and also announced a share repurchase program set at $40 billion. The program is replacing the previous $40 billion repurchase program that will expire at the end of the month.

Microsoft reported a full fiscal year earning of $21.9 billion, and last quarter, the company had $77 billion is cash on its balance sheet.

Earlier this month, Microsoft announced the acquisition of Nokia’s mobile phone business for $7.2 billion in cash.

The company’s success thus far is one indication of why it still holds a top AAA credit rating, and is one of only four U.S. companies that do. After watching Microsoft’s decisions closely, investor Carl Ichan is even encouraging Tim Cook, Apple CEO, to increase Apple’s dividend, and return some of its cash stash to shareholders.