Microsoft is upping its share dividend by three cents, or 23 per cent, in a move to placate investors who've struggled to see much return on the stock in recent months. Peter Klein, CFO at Microsoft, said the move, alongside the firm's share buyback programme, was evidence of its confidence in long-term growth. Microsoft shares …
"Microsoft shares are down from $31 at the start of the year to just over $25 today, which is bad for both investors and senior staff relying on share option packages to bolster their salaries."
The best news I've heard in a long time.
What is the difference between a company that rewards investors out of its capital and a Ponzi scheme ?
M$ is easily able to pay these dividends out of profits (EPS being 51 cents last quarter). If it were using capital reserves in order to pay dividends that might be seen as a problem.
Of course, looked at the right/wrong* way, the entire stock market is a giant Ponzi scheme ...
* delete whichever is inapplicable
The same as the difference between Steve Ballmer and a used car salesman.
Still no Ballmer icons? Do you want me to draw some for you?
What is the similarity?
If your lemonade stand makes $100 one day, and you spend $50 to go out to dinner, are you running a Ponzi scheme? The purpose of a business is to make money for its investors. Distributing dividends is one simple way to give them a return on their investment. What is the problem?
Moving from Growth to Blue Chip
so is this another sign that Microsoft is following the likes of IBM and moving from an R&D led Growth company with a rising stock valuation to a Cash Cow supported Blue Chip where the value to investors is in dividends but the company remains at a fairly static valuation until nimbler competitors start to cut into it's margins.
Google have this to look forward to. Apple have, so far, avoided getting to this size. Oracle seemed to get to this condition then went on its recent buying spree which may revitalize them
Either way... I don't think it's the end of changes to come at Microsoft - Execs like Bach and Elop and smart folks like Chris Wilson seem to have realised this and are jumping ship - mostly to Google, Oracle, VMWare though a few startups still figure in the equation.
It's going to be an interesting year...
Hmmmmmmmm thought my ignorant and rather limited scope on life...
MS has cut back on their customer service "staff".... and now that is a "foreign call center" job.... cheapest option gives the cheapest service.... Sure to impress zillions of distraught customers.
I have met so many people who say Office 07 was a joke - and refuse to use it.... I tried it and in the bin the disks went.....
They scam every one on pricing and their bogus multi-variation software.... the school version, the home version, the small office home office, the business version, blah blah blah blah.....
Almost all of Microsofts innovation has been from stealing everyone one else's ideas...
The Corruption, the dirty deals, rigging the ISO process......
Scam, after scam, after scam........
Let the bastards sink.
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