Microsoft raises dividend 16 per cent

Technology giant Microsoft has announced it will increase its dividend to US36 cents in December.

Technology giant Microsoft is raising its quarterly dividend by 16 per cent to US36 cents a share. (AAP)

Microsoft is raising its quarterly dividend by 16 per cent to US36 cents a share.

The technology giant on Tuesday announced it will pay the new rate on December 10.

Microsoft last September increased its dividend to US31 cents from US28 cents.

Shares in the technology giant closed at $US43.98, up 94 cents, or 2.2 per cent.

For the year to date, Microsoft shares are down about five per cent.