On Monday, Microsoft (MSFT) announced it will increase the company's quarterly dividend by 18.18%. The new quarterly dividend will equal 13 cents per share versus 11 cents per share in the same quarter last year. In addition to the dividend increase, the company announced a $40 billion stock buyback program. It should be noted though the buyback program runs through September 30, 2013. The projected payout ratio is 24% versus 20% on the prior dividend rate of 44 cents. The payout estimate is based on the projected June 2009 earnings estimate of $2.15.

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