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Microsoft Announces $40 Billion Buyback and 3.4 Percent Dividend

  +Follow September 17, 2013 10:32AM
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Facing pressure to return money to shareholders, on Sept 17 Microsoft Corporation (MSFT) revealed a plan to buy back $40 billion in shares and start doling out a $0.28 dividend, constituting a 3.4 percent return. While there is no timeline on the buyback, the dividend – which topped analyst estimates of a dividend increased by 2 cents – will be the second largest among tech companies worth over $100 million, only slightly less than the 3.8 percent paid by Intel Corporation (INTC) .

In June the company first began revealing that a massive change in strategy would be taking place when they unveiled their restructuring as “One Microsoft” as a response to criticism the company was fractured and inter-competitive, and as a result had incubated a toxic corporate culture that stifled innovation.  

Fears the company was stagnating were confirmed on July 18, when the company issued an incredibly disappointing second quarter 2013 earnings report. The report, which included a $900 million writedown on the failure of the Surface RT tablet, caused a 15 percent two-day plunge in the stock that the company still hasn’t fully recouped.

Following the stock plunge, Microsoft has scrambled to try to placate shareholders and retool the company. First came a change in leadership. On Aug 23 much-derided CEO Steve Ballmer revealed he would be stepping down within a year, causing a 6 percent stock spike.

On Sept 3 they announced the purchase of Nokia Corporation (NOK) , making clear their intention to make a play in smartphones, a market in which they have badly lagged.

Now with the buyback and increased dividend, Microsoft is attempting to appeal directly to the pocketbooks of disgruntled long-term investors. Microsoft’s stock is only up 30.37 percent from five years ago compared to a 53 percent gain for the S&P 500. The company is worth 60 percent of what it was in Dec. 1999, when it hit an all-time high of $58.35.

Microsoft edged up on the news of the dividend and buyback, gaining .73 percent to hit $33.04 a share.

 

(image of Microsoft Store courtesy of WIkimedia Commons)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for MSFT
Patrick
17 Sep 14 02:00:04
#TOPTICKERTWEETS $AAPL $ONE $SPY $USD $YHOO $FB $MSFT $QQQ $SPX $TSLA #quantheta
Vjeko Richter
17 Sep 14 01:31:23
RT @TweakTown: .@Microsoft unveils an @Xbox controller made specifically for @Windows (by @anthony256) $MSFT http://t.co/I3q6bCA4yr http://…
WKRB News
17 Sep 14 01:26:28
Microsoft Short Interest Down 6.0% in August $MSFT http://t.co/QQ9Vhm92dd
US Banking News
17 Sep 14 01:21:37
Microsoft Short Interest Down 6.0% in August $MSFT http://t.co/SiLt1M38XU
FinancePress
17 Sep 14 01:13:03
$MSFT Microsoft: Another Healthy Dividend Raise (MSFT): Microsoft: Another Healthy Dividend Raise (MSFT) Seek... http://t.co/fhZ8ALhU92
Stock Wire
17 Sep 14 01:09:44
Microsoft: Another Healthy Dividend Raise (MSFT) $MSFT http://t.co/nvq37YJCFw
Thudder & Wicks
17 Sep 14 00:36:08
Round two of $MSFT #Microsoft layoffs coming September 18: Sources http://t.co/08XcpD8ZxV
Thudder & Wicks
17 Sep 14 00:34:27
$MSFT #Microsoft Adds Two Board Members, Increases Dividend http://t.co/I7Ll7K3Wcw
Stock Signaling
17 Sep 14 00:32:10
Movers and Shakers: Recently Upgraded: $CBL $TEX $MSFT $AVNR $STT $NOK $CNVR $LULU $XPO $AMTD $NOR $COH $CCL $TMUS $NFLX #analyst #mkt #dow
Tirath Ramdas
17 Sep 14 00:28:07
$MSFT is better prepared than most peers to make good strategic acquisitions outside of the US. That, and they have the cash.
John Michael
17 Sep 14 00:26:29
RT @SeekingAlpha: Microsoft: The Era Of $99 Windows Tablets Is Here http://t.co/2Qu8XQdQNS $GOOG #GOOGLE $INTC $SSNLF $TOSYY $MSFT
Alysia Sarkisian
17 Sep 14 00:25:16
RT @SeekingAlpha: Microsoft: The Era Of $99 Windows Tablets Is Here http://t.co/2Qu8XQdQNS $GOOG #GOOGLE $INTC $SSNLF $TOSYY $MSFT
Dow Stocks
17 Sep 14 00:23:24
#Dow #stocks $MSFT Microsoft Daily:1.12% Weekly:0% YTD:26.82% Trend:65 / 100 http://t.co/lYPgBkIeGg
Quantpost Technology
17 Sep 14 00:22:01
$MSFT News Alert: http://t.co/vdDWhI5Jfx Updated options view: https://t.co/gQINyZhW88 All options views: https://t.co/gu71urtdg5
Seeking Alpha
17 Sep 14 00:21:59
Microsoft: The Era Of $99 Windows Tablets Is Here http://t.co/2Qu8XQdQNS $GOOG #GOOGLE $INTC $SSNLF $TOSYY $MSFT
Tirath Ramdas
17 Sep 14 00:19:10
Theory: healthy dividend raise from $MSFT suggests good times to come for non-US startups - US cash for divs, rest for acqui-growth.
John Michael
17 Sep 14 00:14:43
RT @SeekingAlpha: Microsoft: Another Healthy Dividend Raise http://t.co/54TztvjaGO $MSFT #MICROSOFT #WINDOWS
Tony Moon
17 Sep 14 00:11:32
RT @MrBarrySchwartz: Another dividend increase for Microsoft. 11% bump. Yields more than treasuries and valuation ex-cash is attractive $MS…
Quantpost Technology
17 Sep 14 00:10:07
$MSFT News Alert: http://t.co/FTxQk7yjgb Updated options view: https://t.co/xjW5yxAEVn All options views: https://t.co/gu71urtdg5
Seeking Alpha
17 Sep 14 00:10:06
Microsoft: Another Healthy Dividend Raise http://t.co/54TztvjaGO $MSFT #MICROSOFT #WINDOWS
Beleggers Belangen
17 Sep 14 00:08:05
RT @mennovanhoven: Microsoft verhoogt dividend met 11%, kwartaaldividend naar $0,31. #dividend $MSFT
FinancialJuice
16 Sep 14 23:57:29
Microsoft $MSFT have increased their dividend by 11% to USD 0.31 vs. Exp. USD 0.30 #stocks #fx
James Nakashian
16 Sep 14 23:40:29
RT @TweakTown: .@Microsoft unveils an @Xbox controller made specifically for @Windows (by @anthony256) $MSFT http://t.co/I3q6bCA4yr http://…
Sleek Money
16 Sep 14 23:37:23
Analysts’ Recent Ratings Updates for Microsoft $MSFT http://t.co/4mvqKt3nAV
TweakTown
16 Sep 14 23:36:04
.@Microsoft unveils an @Xbox controller made specifically for @Windows (by @anthony256) $MSFT http://t.co/I3q6bCA4yr http://t.co/I7lRe5Pf65
US Banking News
16 Sep 14 23:28:25
Analysts’ Recent Ratings Updates for Microsoft $MSFT http://t.co/1mF61ntguV
Zonebourse News
16 Sep 14 23:20:06
Microsoft annonce le départ de deux administrateurs et une hausse du dividende http://t.co/Ol5YGCSPeu $MSFT $KRFT
Simon Michael
16 Sep 14 23:20:01
Microsoft increases Dividend, Big Techs Return Cash http://t.co/10pQLzyN9j #IBDNews via @IBDinvestors $MSFT $V $CSCO $AAPL $ORCL $KRFT $IBM
4-traders.com
16 Sep 14 23:05:03
Microsoft : Redline Trading Solutions Extends Windows Support to InRush Ticker Plant http://t.co/QfhYbm44aJ $MSFT
4-traders.com
16 Sep 14 22:55:03
Microsoft : OAS and Jamaican Government Present Draft National Cyber Security Strategy http://t.co/pJwNYalzBH $MSFT
4-traders.com
16 Sep 14 22:40:28
Microsoft : Rockstar Games to Launch Grand Theft Auto V http://t.co/7lMg7wp60l $MSFT
Jamie Pastore
16 Sep 14 22:39:57
$MSFT integration strategy http://t.co/1C37SpupVD
FinancePress
16 Sep 14 22:34:30
$MSFT Microsoft Corporation: Microsoft announces board changes and quarterly ...: Microsoft Corporation: Micr... http://t.co/66IxdIKjJ9
Stock Wire
16 Sep 14 22:29:15
Microsoft Corporation: Microsoft announces board changes and quarterly ... $MSFT http://t.co/2a2xHyzEYd
Ed Carson
16 Sep 14 22:15:50
Microsoft Hikes Dividend As Big Techs Return Cash http://t.co/ZVCSHAbQR2 $MSFT $AAPL $CSCO http://t.co/HImZwIfeSP
Media Sentiment
16 Sep 14 22:14:50
$MSFT received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 450
PolliesDividend
16 Sep 14 22:09:14
RT @dividendfund: Microsoft increases dividend by 11% #dividend $MSFT
Nereida Diesen
16 Sep 14 21:38:31
It's nice to be a Microsoft shareholder the last year [link removed] $msft ( long)
David Jackson
16 Sep 14 21:33:16
Microsoft hikes dividend 11%, adds two new directors $MSFT http://t.co/950C98EvfO
Menno van Hoven
16 Sep 14 21:30:59
Microsoft verhoogt dividend met 11%, kwartaaldividend naar $0,31. #dividend $MSFT
Deana
16 Sep 14 21:27:53
Microsoft $MSFT increases dividend 11% http://t.co/jFosXwUo5o #stocks
Dividend Fund
16 Sep 14 21:27:40
Microsoft increases dividend by 11% #dividend $MSFT
dividend hike
16 Sep 14 21:23:01
Microsoft increases dividend by 11% $MSFT #dividend: http://t.co/hKOplUKq1H
howardlindzon
16 Sep 14 21:17:27
It's nice to be a Microsoft shareholder the last year http://t.co/sgGH2K4ClV $msft ( long)
dtrey1000
16 Sep 14 21:13:20
RT @StockSignaling: Upgraded Stocks Active After Hours: $VNET $UA $JPM $VZ $MSFT $AVNR $TMUS $CSIQ $NOK $TSLA $ECOM $TRP $XPO $CNVR $JDSU h…
Stockaholics
16 Sep 14 21:09:22
Our Platinum Penny Stock Picks, Gained 90% In The Past 2 Days! Get our next pick early: http://t.co/hep0lGZUgZ $MSFT $ORCL $VOD
Pass the Puck
16 Sep 14 21:05:36
House Passes Bill to Prevent Using Welfare Benefits at Marijuana Stores http://t.co/1cp3OsZ44V $GOOG $MSFT $DISH $VIA $GE $GLW $S $MINE
PredictWallStreet
16 Sep 14 21:00:30
The PWS Poll Results for $MSFT, 9/18/2014, are: 77% up. See more at: http://t.co/FlCTkj04HS, @Stock_Sentiment
Trent Blair
16 Sep 14 20:58:18
$BA and $MSFT calls looking good for tomorrow. 135 strike on BA 49 on MSFT Sep 26
Stockaholics
16 Sep 14 20:55:39
Our Platinum Penny Stock Picks, Gained 90% In The Past 2 Days! Get our next pick early: http://t.co/hep0lGZUgZ $XLF $F $FN $MSFT
				
				
  +Follow September 17, 2013 10:32AM
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