Microsoft Replaces $40 Billion Share Buyback Program, Offers Dividend Increase
September 17, 2013 11:26 AM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: Hardly laudable
9/17/2013 5:20:00 PM
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
9/18/2013 3:19:00 PM
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.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Microsoft Holding Surface 2.0 Event September 23
September 10, 2013, 12:02 PM
Microsoft Purchases Nokia's Devices and Services Division for $7.2B
September 3, 2013, 12:00 AM
Quick Note: Facebook Wants to Make Your Mobile Photos Prettier
December 16, 2014, 11:50 PM
Apple Abandons Russia; Ruinous Ruble Run Sees 25% Inflation in a Single Day
December 16, 2014, 5:40 PM
BlackBerry Classic Sells Out Online (Seriously, It Has) for North America
December 15, 2014, 7:07 PM
Canada Probes Apple and Carriers Over Reports of Anticompetitive Deals
December 11, 2014, 5:45 PM
Nokia HERE Beta is Now Available for All Android Phones and Tablets
December 10, 2014, 1:40 PM
UK's Royal Mail Tests Holiday 3D Printing Service
December 9, 2014, 5:50 PM
Most Popular Articles
Air Force Worries Hot Fuel Could Harm F-35, "Proactively" Paints Trucks Shiny
December 11, 2014, 9:06 AM
Analysis: Discovery Channel's "Eaten Alive" was a Sham, But Could Lead to Real Discoveries
December 9, 2014, 3:11 PM
LaWS (Laser) "Kills" Boat-Hauled Fuel Tanks, UAV "Bomber" in the Persian Gulf
December 12, 2014, 8:31 PM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Ford Announces QNX-Powered SYNC 3, Brags It's "More Smartphone-Like"
December 11, 2014, 10:32 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information