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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)

Results for MSFT
Mutual Friends
23 Apr 14 11:59:52
Earnings Preview - Microsoft Q3 2014 http://t.co/Eiee82sWWk $MSFT, $AAPL, $GOOG, $ORCL
Corne Smit
23 Apr 14 11:59:52
Earnings Preview - Microsoft Q3 2014 http://t.co/dAhAoXC3Ln $MSFT, $AAPL, $GOOG, $ORCL
Alain Goffaux
23 Apr 14 11:56:38
$NOK : Complicated Transactions http://t.co/9IWqDr3rww , very complicated transaction. Can't wait the completion of the $MSFT deal.
Scott Shapiro
23 Apr 14 11:54:58
RT @SeekingAlpha: Nokia: Finding $0.40-3.70 Upside In The Black Box http://t.co/KI0Xm9zgop $MSFT #MICROSOFT #WINDOWS $QCOM $ARMH $GXF $NOK
Quantpost Technology
23 Apr 14 11:53:45
$MSFT News Alert: http://t.co/Oz23BeqTqo Updated options view: https://t.co/4GKVdtw1CC All options views: https://t.co/gu71urLmud
Seeking Alpha
23 Apr 14 11:53:44
Earnings Preview - Microsoft Q3 2014 http://t.co/JqQuu8TbyN $AAPL #APPLE $GOOG $ORCL $MSFT
SNN Team
23 Apr 14 11:53:27
$MSFT - U.S. EPA Lists Nation’s Top Renewables Users -> http://t.co/uRugypoeyR #stock #stocks #stockaction
Quantpost Technology
23 Apr 14 11:52:06
$MSFT News Alert: http://t.co/5wPs9mydmX Updated options view: https://t.co/rAxaOUozcx All options views: https://t.co/gu71urLmud
Seeking Alpha
23 Apr 14 11:52:05
Nokia: Finding $0.40-3.70 Upside In The Black Box http://t.co/KI0Xm9zgop $MSFT #MICROSOFT #WINDOWS $QCOM $ARMH $GXF $NOK
LoveStockNews
23 Apr 14 11:42:07
$MSFT - Coca-Cola Or Microsoft: The Other Side -> http://t.co/sZjKK4P1lA #stock #stocks #stockaction
Bishop SheltonDaniel
23 Apr 14 11:37:23
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Mohammed alharbi
23 Apr 14 11:36:56
RT @bo3bo32: $NFLX $AAPL $GOOG $PCLN $FB $MSFT put 38 apr op:27 cent http://t.co/2lEU2VtfUp
Teodor Gareth
23 Apr 14 11:29:04
$MSFT Coca-Cola Or Microsoft: The Other Side http://t.co/9EzN5yj42S
Stock Wire
23 Apr 14 11:26:37
Coca-Cola Or Microsoft: The Other Side $MSFT http://t.co/tNB3ltND5r
Denis Dufort
23 Apr 14 11:17:06
$MSFT [video] Too simple to say it's a bubble: Pro http://t.co/iJiIIR9eR6
Daily Delphi
23 Apr 14 11:10:56
Forecast: #Microsoft $MSFT close at 40.00 from Community on Apr 23, 2014 #DailyDelphi http://t.co/yTRSDmYvCr
Denis Dufort
23 Apr 14 11:06:45
$MSFT [video] Tech bubble 2000 vs. today http://t.co/xOtUKyB199
The Geezer
23 Apr 14 11:01:09
Coca-Cola Or Microsoft: The Other Side $MSFT $KO http://t.co/nDDgfp0FZW
StockNewsNet
23 Apr 14 11:00:20
$MSFT - [video] Einhorn: Clear consensus over tech bubble -> http://t.co/rbFSRALzn9 #stock #stocks #stockaction
Jesse Felder
23 Apr 14 10:56:39
Steve Ballmer finally joins @twitter and reveals he's an iPhone user http://t.co/fCs2oIGuGB $AAPL $MSFT
Jason
23 Apr 14 10:55:18
@agwarner the new $MSFT
Albab Ahmed
23 Apr 14 10:53:10
RT @csmit29: Coca-Cola Or Microsoft: The Other Side http://t.co/oJs6tahRTs $MSFT, $KO
SNN Team
23 Apr 14 10:53:05
$MSFT - Microsoft offers a peek at Remote Desktop to Windows Phone 8.1 users -> http://t.co/PHOpt8Q6lc #stock #stocks #stockaction
Mutual Friends
23 Apr 14 10:52:06
Coca-Cola Or Microsoft: The Other Side http://t.co/jQSEbIAxwc $MSFT, $KO
Corne Smit
23 Apr 14 10:52:06
Coca-Cola Or Microsoft: The Other Side http://t.co/oJs6tahRTs $MSFT, $KO
David Jackson
23 Apr 14 10:51:00
Microsoft reportedly bringing back Start menu in August $MSFT http://t.co/jIseo8pWfa
Quantpost Technology
23 Apr 14 10:50:23
$MSFT News Alert: http://t.co/iQtVcKr0Pt Updated options view: https://t.co/kaZLpUFz8N All options views: https://t.co/gu71urLmud
Seeking Alpha
23 Apr 14 10:50:21
Coca-Cola Or Microsoft: The Other Side http://t.co/YVO2586btB $MSFT #MICROSOFT #WINDOWS $KO
MackSalad
23 Apr 14 10:48:49
#PS4 vs. Xbox One: We Now Have a Clear Winner http://t.co/g3hSaWuOBB via @daily_finance $MSFT $SNE
Kevin Hannigan
23 Apr 14 10:44:24
Very, very blue: $MSFT #IBM
Denis Dufort
23 Apr 14 10:39:35
$MSFT SunPower Rises as Apple and Microsoft Prepare to Report Earnings http://t.co/Uu2gFc1uje
Arab_Zanger
23 Apr 14 10:36:33
RT @bo3bo32: $NFLX $AAPL $GOOG $PCLN $FB $MSFT put 38 apr op:27 cent http://t.co/2lEU2VtfUp
PJ Jakovljevic
23 Apr 14 10:30:46
#Microsoft reportedly bringing back Start menu in August http://t.co/EPrLGRO7VE $MSFT
LoveStockNews
23 Apr 14 10:27:01
$MSFT - 3 Easy Tips for Picking a Winning Dividend Stock -> http://t.co/AOn8CEu7fe #stock #stocks #stockaction
WallStreet
23 Apr 14 10:26:13
$MSFT - Microsoft Corporation (NASDAQ:MSFT): Leap Towards Expansion - http://t.co/OLb36KsFu8
mosami
23 Apr 14 10:23:51
RT @bo3bo32: $NFLX $AAPL $GOOG $PCLN $FB $MSFT put 38 apr op:27 cent http://t.co/2lEU2VtfUp
Denis Dufort
23 Apr 14 10:22:35
$MSFT Microsoft earnings: First time for new CEO Nadella http://t.co/OEoEu14RUV
ali hassan
23 Apr 14 10:21:56
RT @bo3bo32: $NFLX $AAPL $GOOG $PCLN $FB $MSFT put 38 apr op:27 cent http://t.co/2lEU2VtfUp
MOHAMMAD ALZAHRANI
23 Apr 14 10:21:25
$NFLX $AAPL $GOOG $PCLN $FB $MSFT put 38 apr op:27 cent http://t.co/2lEU2VtfUp
Gary Hudson
23 Apr 14 10:08:32
#Microsoft reportedly bringing back Start menu in August $MSFT #windows8 http://t.co/tkjgaVHOpo
Mutual Friends
23 Apr 14 10:07:31
Microsoft reportedly bringing back Start menu in August http://t.co/NtksExFfOS $MSFT
Corne Smit
23 Apr 14 10:07:31
Microsoft reportedly bringing back Start menu in August http://t.co/gzRmN7u3KZ $MSFT
Craig Falwell
23 Apr 14 10:07:19
gee, thanks $MSFT - I will anxiously await. Such great innovation… http://t.co/xiiLke4miP
Quantpost Technology
23 Apr 14 10:06:14
$MSFT News Alert: http://t.co/ug8QaCmDPz Updated options view: https://t.co/NRyJbMXjTh All options views: https://t.co/gu71urLmud
MarketCurrents
23 Apr 14 10:06:13
Microsoft reportedly bringing back Start menu in August http://t.co/wKbwaVBHNb $MSFT
Options analyst
23 Apr 14 10:04:49
$gale +9% posted bullish block trade details $znga $yhoo $msft $vrng $gmcr $bidu $fb $AAPL $gild $SSYS $NFLX http://t.co/fwPLIafUWP
ᙇᓐ M Edward Borasky
23 Apr 14 10:02:19
RT @hunterwalk: Person who follows $MSFT closer than I do, said they'll need to spin off xbox in order to hold hedge funds at bay while reg…
SpeediTrader
23 Apr 14 09:56:58
Thu e/r aftr bell $AMZN $BIDU $ALTR $BRCM $AFOP $BLDR $CAMP $DECK $SYNA $EW $AWAY $LVS $MLNX $MSFT $MPWR $NEM $NTGR $QLIK $SBUX $SPWR $SWFT
MarketNews
23 Apr 14 09:55:22
$MSFT - Microsoft sales, earnings seen down in March quarter -> http://t.co/ZYReGoPR89 #stock #stocks #stockaction
MarketNews
23 Apr 14 09:55:04
$MSFT - Microsoft Corporation Earnings: Can Nadella Bring Back Growth? -> http://t.co/bnYNKAbKXv #stock #stocks #stockaction
				
				
  +Follow September 17, 2013 10:32AM
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