Microsoft Announces $40B Share Buyback

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Microsoft has announced a $40 billion share buy back plan. Feel free to insert your own "from Bill Gates' petty cash" jokes here.

Microsoft announced a new $40 billion share buyback on Tuesday as part of an effort by the transitioning US tech giant to return more cash to stockholders. The tech giant, which has seen its stock stagnate in recent years, also said it was increasing its dividend by 22 percent to 28 cents a share.
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This isn't that big a deal really since it' just replacing an old buyback program that was set to expire on September 30th. Raising the dividend is interesting news though...
 
Having both a buyback and a dividends increase means Microsoft is telling Wall Street they have undervalued their stock. This should also cause a boost to their stock because it signals to the market that Microsoft is confident of their new business strategy and that they are willing to spend cold hard cash to prove it. We'll see how Wall Street reacts.

Investors do love them some dividends though. That's the reason why they complain about Apple sitting on so much cash and not letting their investors wet their beak a little.

If you have MS stock and don't believe they will come out alive this would be a good time to dump it and make some money.
 
Microsoft stock has been in a slump this century, would be a better thing to say than 'recent years'. The last high they had was in 1999. And compared to other tech companies, its peak was even bad then.
 
defunctdoormat said:
Microsoft stock has been in a slump this century, would be a better thing to say than 'recent years'. The last high they had was in 1999. And compared to other tech companies, its peak was even bad then.
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I'm assuming you meant decade
 
Microsoft is doing poorly. They will not survive the year. The xbone is done. The wiiu is done. The ps4 is done. Apple is done. Colorado is done. Syria is done. England is done. Pop rocks are fun.
 
According to Wikipedia:

Share repurchase
It is relatively easy for insiders to capture insider-trading like gains through the use of "open market repurchases." Such transactions are legal and generally encouraged by regulators through safe-harbours against insider trading liability
 
defunctdoormat said:
Microsoft stock has been in a slump this century, would be a better thing to say than 'recent years'. The last high they had was in 1999. And compared to other tech companies, its peak was even bad then.
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Does that matter when their DIV continuously increases? No. Move along padawan.
 
defunctdoormat said:
Microsoft stock has been in a slump this century, would be a better thing to say than 'recent years'. The last high they had was in 1999. And compared to other tech companies, its peak was even bad then.
Click to expand...

Guess I timed it right, as the stock is up from when I bought it years ago. Compared with the poor return on bonds and interest rates, the dividends have been pretty good too.
 
That's a nice dividend increase. And yes, companies normally buy back shares when they feel that they are trading at a discount relative to their net asset value. I actually expected their stock price chart to look a bit different than it does over the last 1/3/5 years, but they apparently still think it's a good time to move.
 
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