Microsoft announces $40 billion buyback stock

Microsoft on Monday announced a new stock buyback program of up to $40 billion, sending its stock up more than 5 percent in premarket trading.

The software giant said it would repurchase up to $40 billion worth of its shares through September 2013. It recently completed a previous $40 billion buyback program.

The Redmond, Wash.-based company, meanwhile, also announced plans to pay a 13-cent quarterly dividend, which is an 18 percent increase over its previous quarterly dividend. The dividend will be payable on December 11 to shareholders of record as of November 20.

In addition to the stock buyback program and increased quarterly dividend, Microsoft is also planning to float out corporate debt of up to $6 billion. The proceeds from the debt offerings will be used for general corporate purposes, stock repurchases, and working capital.