U.S. Markets close in 1 hr 7 mins

UPDATE 1-Microsoft approves $40 bln share repurchase program

(Adds dividend, background, shares)

Sept 18 (Reuters) - Microsoft Corp said on Wednesday its board had approved a new share repurchase program of up to $40 billion and raised its quarterly dividend.

The company's shares rose 1.3% to $140.35 in after-market trading.

Microsoft, which said it would hold its annual shareholders meeting on Dec. 4, also declared a quarterly dividend of 51 cents per share, 11% higher than the preceding quarter.

The repurchase program, which has no expiration date, may be terminated at any time.

The Redmond, Washington-based company returned $7.7 billion to shareholders in the form of share repurchases and dividends in the fourth quarter of fiscal year 2019. (Reporting by Debroop Roy in Bengaluru; Editing by Shounak Dasgupta)