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Microsoft Plans Huge Share Buyback

September 20, 2016

Fortune Brainstorm TECH 2014Fortune Brainstorm TECH 2014
Satya Nadella, CEO of Microsoft
, at Fortune Brainstorm TECH in Aspen, CO on July 14th, 2014.Stuart Isett/ Fortune Brainstorm TECH

(Reuters) – Microsoft on Tuesday raised its quarterly dividend by 8% and said it would buy back up to $40 billion as part of a new share repurchase program.

The company raised its dividend to 39 cents per share, up 3 cents from the previous quarter. The technology giant last raised its dividend in September last year.

The new buyback program has no expiration date and may be terminated at any time, the company said on Tuesday. The company also said it was on track to complete its current $40 billion stock repurchase program by Dec. 31.

Microsoft’s shares (MSFT)were up 1% at $57.41 in extended trading on Tuesday.