Microsoft starts $40 billion share clawback

Software giant Microsoft is starting its $40 billion share buyback scheme.

The Vole, which seems to be trying to inject a bit of enthusiasm into its stagnant shares, also announced that it is increasing its dividend by 22 percent to 28 cents a share.

Microsoft has been quietly buying back its own shares since 2008 which may cause some to question if buybacks are worth it. It does indicate that the Vole is attempting to reassure its shareholders that restructuring around “devices and services” is a safe bet.

According to the Times of India, Microsoft shares rose 0.59 percent to close at $32.93 on the back of the news.

Keith Weiss, analyst at Morgan Stanley, said the news was positive for Microsoft but he was still worried about the “struggling devices strategy”.

Citi analyst Walter Pritchard said the company needed to return more capital through dividend.

Microsoft has more than $70 billion in cash holdings, much of which is held overseas.

The Vole is expected to unveil new Surface tablets in New York, which a few analysts appear to be holding out some hope for.