On Tuesday, Microsoft (click ticker for report: ), the largest weighting of our Dividend Growth portfolio, raised its quarterly cash dividend 22% to $0.28 per share, a $0.05 per share increase. The firm also announced a new share buyback program to the tune of $40 billion (replacing the previous $40 billion program set to expire at the end of this month). We are very pleased with the capital allocation decisions at the software giant and view any share repurchases below our intrinsic value estimate of the company ($46 per share at the time of this writing) as value-creating. We’re sticking with the firm as a core holding in our Dividend Growth portfolio and continue to believe Microsoft represents one of the biggest bargains on the market today. Our full-page dividend report on Microsoft will be updated shortly with the new information.
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