Tuesday, September 20, 2011

Dividends will become more important and companies will increase them

 See my posts from 2 years ago that discussed that this would occur. Aivars Lode
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North America Equity Research

Microsoft: MSFT Increases Quarterly Dividend 25% & Continues Existing Share Repurchase Program
Neutral
Click here for the full Alert and disclaimers.

Today Microsoft declared a quarterly dividend of $0.20 per share, a $0.04 or 25% increase over the previous quarter’s dividend. This compares to the $0.03 or 23% increase a year ago. Additionally, the company expects to continue its existing share repurchase program. We believe Microsoft’s desire to return cash to investors is a positive for shareholders.
·         *  Dividend payout. Microsoft is expected to pay the $0.20 dividend on December 8, 2011 to shareholders of record on November 17, 2011. The stock will trade ex-dividend on November 15, 2011.
·         *  Share repurchase. Microsoft also announced that it will continue its existing share repurchase program. The program was originally approved by the board of directors in September 2008 and is set to expire on September 30, 2013. As of June 30, 2011, the original $40 billion program has approximately $12.2 billion remaining. Some investors may have expected the balance of this program to be raised at this time.

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