Microsoft and Harley Davidson Announce Dividend Increases

Microsoft (MSFT) and Harley Davidson (HOG) both announced dividend increases today.

Microsoft announced a 10% increase in their quarterly dividend. The quarterly dividend increases to 11 cents per share versus 10 cents per share in the same quarter last year. The estimated payout ratio will equal 25% based on June 2008 estimated earnings of $1.73. The 5-year average payout ratio is approximately 23% excluding the $3.00 special dividend in 2005.

Harley Davidson announced a 42.9% year over year dividend increase. The new quarterly dividend increases to 30 cents per share versus 21 cents per share in the same quarter last year. The company did increases its quarterly dividend in the 2nd quarter this year to 25 cents per share. The estimated payout ratio will equal 31% based on estimated 2008 earnings of $3.88. The 5-year average payout ratio is approximately 13%. The payout ratio in 2002 equaled 7%.

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