backtop


Print 14 comment(s) - last by W00dmann.. on Sep 18 at 3:26 PM


  (Source: lh3.ggpht.com)
Microsoft is upping the quarterly dividend from $0.23 to $0.28

Microsoft is investing its cash into its own stock through a new share buyback program, and has also announced a dividend increase. 

Microsoft introduced a new $40 billion buyback program, which is replacing the previous program that expires September 2013. While the previous and new buyback programs are both set at $40 billion, the new one doesn't have an expiration date. 

This looks great for Microsoft because it shows that it wants to invest its own cash into its own stock. 

In addition to the buyback program, Microsoft is upping the quarterly dividend from $0.23 to $0.28, which is a 22 percent increase over that of the previous quarter. According to Microsoft, the dividend is payable December 12, 2013 to shareholders "of record" on November 21, 2013. 

“These actions reflect a continued commitment to returning cash to our shareholders,” said Amy Hood, chief financial officer of Microsoft. 

Microsoft has been particularly busy this year trying to turn things around after a failed Surface launch, a lack of enthusiasm for Windows Phone and complaints about Windows 8. The company is currently undergoing a restructuring process, where CEO Steve Ballmer will be out within the next year and devices like Windows Phone, PC and Xbox One will become more unified for a more fluid user experience. 

Microsoft is attempting to stay competitive with new efforts like buying Nokia's devices and services unit for $7.2 billion and holding a new Surface 2.0 event September 23 -- which will hopefully muster up more enthusiasm than the previous generation. 

Source: Microsoft



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Hardly laudable
By MichalT on 9/17/2013 5:20:00 PM , Rating: 3
It more means that they're generating more cash than they can effectively deploy. Generally its better that companies return the cash to shareholders than do things like large acquisitions (remember Microsoft buying a bunch of cable company assets at the top of the market?) It remains to be seen whether Skype and Nokia purchases will be written down substantially like virtually every other large Microsoft purchase, but Microsoft is grotesquely profitable, generates more money than it can use, and should return it to its shareholders.


RE: Hardly laudable
By W00dmann on 9/18/2013 3:19:00 PM , Rating: 2
That assumes they are using some of their own cash hoard to buy back shares, versus borrowing the money (leverage) to do so given how dirt cheap rates are at the moment. If they do borrow instead of dip into their treasury, your argument becomes invalid.


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki