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.
Investors, who tend to cheer stock buyback programs because it makes existing shares in the market more valuable, pushed Microsoft's stock to $26.50 a share in premarket trading, up 5.33 percent.
Microsoft has seen its shares lose roughly 22 percent of their value since it earlier this year, which ultimately. And the beating that the broader markets have been taken in the interim also hasn't helped Microsoft's share price.
PC maker Hewlett-Packard also announced a stock buyback program Monday, authorizing up to $8 billion in shares to be repurchased.
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.