Microsoft's Dividend Play

Microsoft Corp.

might be raising its dividend for the first time in two years, according to data compiled by Bloomberg. Flush with the cash, Microsoft may boost its quarterly dividend from $0.13 to $0.15, or a yield of 2.31% at a cost of $700 million per year. After a 21% slide in the stock price over the last quarter, the company's management might use a dividend increase to keep investors from jumping ship. Perhaps Microsoft's board was watching Fast Money last week when Eric Jackson of

urged the company to raise its dividend rather than offer a one-time temporary payout. A payout would encourage investors to speculate and get in and out quickly. Raising the dividend, however, encourages investors to stay in the stock for the long-term.