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Microsoft: $40 billion stock buyback, dividend increase

  1. #1


    Wynnum Australia
    Posts : 466
    Windows-10-Pro-Build-11099.rs1-x64

    Microsoft: $40 billion stock buyback, dividend increase




    Microsoft has announced a $40 billion dollar stock buy-back and an increase of 22% to its dividend. This announcement will surely have a positive impact on the relatively stagnant price of Microsoft’s stock and should appease many shareholders, as this will increase the value of the company’s outstanding shares.
    The dividend will increase by 5 cents to 28 cents per share and is payable Dec 12, 2013 to shareholders of record on Nov. 21, 2013. The payout was approved by Microsoft’s board of directors and Amy Hood, CFO stated, “These actions reflect a continued commitment to returning cash to our shareholders”.


    Source: http://www.neowin.net/news/microsoft...dend-increase]

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  2. #2


    Posts : 2,191
    Windows 8.1


    I would certainly be happy if I were an MS stockholder. Unfortunately (for me), many dividend paying stocks are going in a reverse direction and suspending their dividends indefinitely.
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  3. #3


    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.
    Source:

    ... they get wind of a take-over brewing? LOL

    BTW Just the opposite to what Steve Jobs did.. this is good reading for some background,,,

    This indicates that buybacks themselves don't necessarily have a significant, positive impact on share price, even when huge dollar amounts are involved over a long term. They principally appear to have value when there's an opportunity to take advantage of irrationally low stock prices.
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  4. #4


    Wynnum Australia
    Posts : 466
    Windows-10-Pro-Build-11099.rs1-x64


    Quote Originally Posted by Superfly View Post
    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.
    Source:

    ... they get wind of a take-over brewing? LOL

    BTW Just the opposite to what Steve Jobs did.. this is good reading for some background,,,

    This indicates that buybacks themselves don't necessarily have a significant, positive impact on share price, even when huge dollar amounts are involved over a long term. They principally appear to have value when there's an opportunity to take advantage of irrationally low stock prices.
    Thanks for the additional Info's !

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  5. #5


    Posts : 1,925
    Windows 8.1 Pro


    Quote Originally Posted by Superfly View Post
    BTW Just the opposite to what Steve Jobs did.. this is good reading for some background,,,

    This indicates that buybacks themselves don't necessarily have a significant, positive impact on share price, even when huge dollar amounts are involved over a long term. They principally appear to have value when there's an opportunity to take advantage of irrationally low stock prices.
    Most tech stocks, including apple's are non-dividend stocks, so buybacks do not affect stock price as much.

    In this case, Microsoft stock IS a dividend stock, and thus reducing the number of outstanding shares increases the dividend size for each share holder, thus making the stock more valuable for that reason alone. Consider a .25 dividend per quarter, that's $1 per year x however many years you own the stock, that can more than pay for the cost of the stock itself.
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Microsoft: $40 billion stock buyback, dividend increase
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