logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Microsoft Announces $40 Billion Buyback and 3.4 Percent Dividend

  +Follow September 17, 2013 10:32AM
Share:
Tickers Mentioned:

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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for MSFT
TDK
28 Jul 15 23:07:00
| PK LA HYPE EST NUL :( #Microsoft $MSFT #Windows10
nicholas
28 Jul 15 23:06:54
federycoarreola: $MU Micron http://t.co/pA8g30luzZ $MCD $MSFT $FB $EBAY $EA $AAPL $AVGO $SCO $MYEC $GREK $TCK … http://t.co/Z2kvWG3C1I
PamphletShop
28 Jul 15 23:04:28
$MU Micron http://t.co/UKZ3MRGmpH $MCD $MSFT $FB $EBAY $EA $AAPL $AVGO $SCO $MYEC $GREK $TCK #SCO #tradeideas #finance $amzn $goog $googl
 Steve Mahoney #sjm℠
28 Jul 15 23:00:08
Firing up my VMWare Windows to do the Upgrade in an Hour for a Client Rollout POC Model Brace Yourself $msft + #satya @satyanadella ;) #sjm
WLST.com
28 Jul 15 22:55:22
Windows 10 available in 190 countries as a free upgrade $MSFT http://t.co/S6DviI426U http://t.co/UPvtmY5P4U
FonsieTrader
28 Jul 15 22:55:11
$MSFT Windows 10 available in 190 countries as a free upgrade http://t.co/tk9Tq5NezC
BreakingStocksNews
28 Jul 15 22:52:03
$FB $MSFT: Nokia to Sell Ball-Shaped Virtual-Reality Camera for Filmmakers: http://t.co/8V7UQEmvkd
TweakTown - BPM
28 Jul 15 22:45:17
.@Microsoft's 'flagship' store in NYC opens its doors in the fall $MSFT http://t.co/0lXYHCMJ79 http://t.co/XYRM2tHIUc
Cameron Wilmot
28 Jul 15 22:42:13
.@Microsoft's 'flagship' store in NYC opens its doors in the fall $MSFT http://t.co/seOEnOTkTd http://t.co/iVrGRWfBva
TweakTown
28 Jul 15 22:42:08
.@Microsoft's 'flagship' store in NYC opens its doors in the fall $MSFT http://t.co/FGwY6fNe14 http://t.co/bbrUV4tdmG
Thudder & Wicks
28 Jul 15 22:22:32
$MSFT #Windows10 Review: A Welcome Upgrade, Perhaps Too Late http://t.co/EVpjvHdQSM
Mark Peterson
28 Jul 15 22:12:42
To maximize windows10, $MSFT has to win: 1)mobile payments; 2) entertain (TV, gaming); and 3) home appliances (security, life mgmt).
Puerto Finanzas
28 Jul 15 22:08:00
[Señal Twitter EN] $MSFT - http://t.co/5VlP6NtTYi http://t.co/gGFxqu8gMc
Mark Peterson
28 Jul 15 22:06:58
$MSFT Windows10 arrives today and could signal the shift in power from $AAPL back to Gates & Co. 3 things $MSFT has to get right.
Analyst Actions
28 Jul 15 22:06:02
$MSFT: Analyst action by Barclays on Microsoft: http://t.co/oO6GWLI32D http://t.co/q0qZbU7lLn
DK1
28 Jul 15 21:59:35
$MSFT over today's high may get it going http://t.co/JP9kQYJ7Jl
The Stock Professor
28 Jul 15 21:53:02
#Stock #News CONSOL Energy Incurs Q2 Loss on Weak Commodity Prices - Analyst Blog: Divers... http://t.co/xQl8WK6iNj $MU $MSFT $TSLA $AMD
Landy Wingard
28 Jul 15 21:48:31
Windows 10 is seriously great July 28 - CNNMoney $msft http://t.co/4LccYKHKiM
StockenheimerSchmidt
28 Jul 15 21:35:19
Huge Gains On Stock Picks, Plus A Major Announcment: http://t.co/L7DCrvU4Ev $MSFT $ORCL $VOD
StockenheimerSchmidt
28 Jul 15 21:28:19
Huge Gains On Stock Picks, Plus A Major Announcment: http://t.co/L7DCrvU4Ev $XLF $F $FN $MSFT
Jim Goodlett
28 Jul 15 21:27:03
All metal casing on a new #Surface Phone by $MSFT @MIcrosoft? YES please!! Wait till 2016, no thanks! http://t.co/4qy5nZTb12
 Steve Mahoney #sjm℠
28 Jul 15 21:25:28
#Windows10 free upgrade available in 190 countries today http://t.co/swOWlqrW9B cc: LIVE $msft #satya @satyanadella - GREAT Job #sjm
ProTradersNews
28 Jul 15 21:22:02
$MSFT $CTL $COST: Allen Lures Tech Billionaires to Seahawks' Home With Art Fair: http://t.co/XdWGcnHQln
PamphletShop
28 Jul 15 21:21:48
$MU Micron http://t.co/UKZ3MRGmpH #Bonds $INTC $AAPL $GOOGL $IBM $FB $MSFT $AMZN $HPQ $CSCO $EMC $ORCL $SAP $AVGO $QCOM #yellen $GBPUSD $t
Live Trading News
28 Jul 15 21:21:45
$MSFT Microsoft Corporation (NASDAQ:MSFT) Windows 10 http://t.co/wOoXBMAMPj
Shayne Heffernan
28 Jul 15 21:21:45
$MSFT Microsoft Corporation (NASDAQ:MSFT) Windows 10 http://t.co/8MDOGkhHGL
 Steve Mahoney #sjm℠
28 Jul 15 21:18:52
Download: Windows 10 ISOs http://t.co/GGdSJuoOYE cc: $msft + #satya @satyanadella - Great Job - A Beast
PamphletShop
28 Jul 15 21:18:36
$MU Micron http://t.co/UKZ3MRGmpH $INTC $AAPL $GOOGL $IBM $FB $MSFT $AMZN $HPQ $CSCO $EMC $ORCL $SAP $AVGO $QCOM #yellen $GBPUSD $goog
Capital Market Labs
28 Jul 15 21:16:05
Interactive Chart -> http://t.co/Aoq1Rp0BrZ $MSFT Earnings are Declining. http://t.co/B9tnNlLGV8
PamphletShop
28 Jul 15 21:16:02
$MU Micron http://t.co/UKZ3MRGmpH $AAPL $FB $BABA $NFLX $MSFT $INTC $SPY $FIT $XLE $PBR $UGAZ $HIG $LEN $AGN $BCR $BMY $UA $googl $goog
FinancePress
28 Jul 15 21:09:56
$MSFT Microsoft Corporation (MSFT): The Windows 10 Hardware Argument: Microsoft Corporation (MSFT): The Windo... http://t.co/DEdtWKTwyt
Paul Gunton
28 Jul 15 21:09:50
@RealDarrenCohen Could be a time zone issue. Still getting a 404 error. Or $MSFT might have pulled the page due to traffic.
StockNewsWires
28 Jul 15 21:07:02
$MSFT $INTC: The Eight Most Awkward Celebrity Tech Product Launches: http://t.co/ga7EsniQZy
StockNewsWires
28 Jul 15 21:07:02
$MSFT: Sony Earnings: What to Watch: http://t.co/0omcnSxI45
zooey m
28 Jul 15 21:05:48
mediasentiment: $MSFT received a new alert. Find out why at http://t.co/6A03PDuOjo #stocks #daytrading #trading … http://t.co/X3n8d6GPom
PamphletShop
28 Jul 15 21:05:12
$MU Micron http://t.co/UKZ3MRGmpH $FSLR $BIDU $DIS $MCD $MSFT $FB $EBAY $EA $AAPL $AVGO $GOOG $ECIG $SWKS $FSLR #GOOG #stockmarket $AAPL
Media Sentiment
28 Jul 15 21:04:51
$MSFT received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 837
Media Sentiment
28 Jul 15 21:04:50
$MSFT received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 836
Live Stock News
28 Jul 15 21:02:06
$MSFT - Windows 10 available in 190 countries as a free upgrade http://t.co/0st1Al2tfe
Live Stock News
28 Jul 15 21:02:05
$MSFT - Windows 10 available in 190 countries as a free upgrade http://t.co/6SgirXSmtp
matt collom
28 Jul 15 21:02:04
$MSFT - Windows 10 available in 190 countries as a free upgrade http://t.co/n8pAxDc3nJ
matt collom
28 Jul 15 21:02:04
$MSFT - Windows 10 available in 190 countries as a free upgrade http://t.co/lhl3WswEs6
matt collom
28 Jul 15 21:02:03
$MSFT - Windows 10 available in 190 countries as a free upgrade http://t.co/8WcyAYCAmE
Paul Gunton
28 Jul 15 20:59:21
How many people are staying awake to see if they are one of the first people to get #Windows10 tonight? #insomnia #tech #technology $MSFT
PamphletShop
28 Jul 15 20:58:16
$MU Micron http://t.co/UKZ3MRGmpH $FSLR $BIDU $DIS $MCD $MSFT $FB $EBAY $A $AAPL $AVGO $GOOG $ECIG $SWKS $FSLR #GOOG #stock
Jon Coulter
28 Jul 15 20:54:36
RT @camwilmot: .@Windows 10 launch has @Microsoft securing 40Tbps of bandwidth $MSFT http://t.co/zGaxXsy0tt http://t.co/p6y09IusLt
PennystockBABY!
28 Jul 15 20:51:28
RT @veeko_k: @CNBCFastMoney @anthonynoto - unlock value for shareholders? Put this up for sale and get out of the way. $GOOG $YHOO $FB $AMZ…
FinBUZZ Just-IN
28 Jul 15 20:49:13
Save 75% by finding the cheapest broker to trade US Tech Giants http://t.co/F3popAHoym $AAPL $GOOG $MSFT $FB $TWTR #spreadbetting #cfd
StockenheimerSchmidt
28 Jul 15 20:47:40
Huge Gains On Stock Picks, Plus A Major Announcment: http://t.co/L7DCrvU4Ev $NTEK $MSFT $MWIP
ProTradersNews
28 Jul 15 20:47:02
$MSFT: Tech's Most Awkward Celebrity Product Launches: http://t.co/pFv5gd31nW
				
				
  +Follow September 17, 2013 10:32AM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

5 Small-Cap Energy with Hedges to Survive Oil's Bear Market


DraftKings and FanDuel: The New Face of Legalized Online Sports Betting

Is the Market Paying the Toll of Tech?

What Will Uber Look Like in the Future?


How Dodd-Frank Divides Political Parties Prior to 2016 Election

 

Apple (AAPL) is expected to announce its latest quarterly earnings next week. As the most valuable company by mark... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN