The company still faces a significant hurdle in Europe, where regulators also found antitrust violations and have ordered a record-setting fine of roughly $600 million. Microsoft is appealing the ruling, although it already has accounted for the fine on its books and put the money into a holding account pending the outcome of the case.

The company also faces one major private suit, from RealNetworks Inc., which makes a competing digital media player.

"We think we have put many of our legal issues in the rearview mirror, so to speak," Ballmer said on a conference call with stock analysts and reporters. He said Microsoft was "happy to be in this position" of giving $75 billion back to shareholders over the next four years, a total that presumes it follows through on buying the full $30 billion in company stock.

Such is the company's ability to replenish profit and cash that executives said they also would continue to look at possible acquisitions of other companies and maintain heavy research and development spending, which last fiscal year was $4.7 billion.

John G. Connors, the company's chief financial officer, said the plan was designed to try to navigate through the demands of several differing types of investor groups, some that wanted higher regular dividends, some that wanted a large cash payout and some that wanted a more aggressive stock buyback program.

The move is the second major Microsoft initiative in the past two weeks. Early this month, Ballmer sent an e-mail to the company's 50,000 employees calling for $1 billion in cost cutting.

Higher dividends, cost-cutting moves and a flat stock price often are signs of a company that is no longer capable of the rapid growth that is often prized by investors.

But Ballmer, who took over operational reins from Gates in 2000, rejects any such talk even as he guides the company along a lower-octane trajectory.

"As I look out for the next several years . . . I'm confident we have some of the greatest dollar growth prospects in front of us of any company in the world," Ballmer said. "We're in a phase of great opportunity and . . . of significant growth."

Analysts point out that although Microsoft's stock has largely stood still for two years, the company continues to grow by roughly 10 percent year-to-year, a feat most firms would envy.

Jeremy J. Siegel, professor of finance at the Wharton School of Business, praised Microsoft's move as smart.

"Cash that's just sitting around gets discounted" in the market, he said.