Inside Microsoft’s New $40 Billion Stock Repurchase Program

Posted: September 17, 2013 in Uncategorized


Microsoft has announced a new $40 billion share repurchase authorization with no expiration date. With the move, Microsoft in effect granted itself $40 billion in latitude to buy its own shares whenever it wants to. The announcement came with a dividend increase of 22 percent to $0.28 per share.

Its stock has responded by doing very little, rising just 0.39 percent in regular trading. It trails the NASDAQ’s rise of 0.76 percent during today’s normal hours. It almost feels odd that investors would less than shrug at the company’s news.

The $40 billion program was not a surprise. Microsoft yet-current $40 billion program (not the one announced today) will wrap on September 30. So Microsoft had to either announce a new program or stop repurchasing its shares, which it would not do. The company’s massive cash accumulation is implicit pressure to return wealth to investors. And share repurchases are an important…

View original post 332 more words


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s