Microsoft plans another $40 billion buyback

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http://www.bloomberg.com/news/articles/2016-09-20/microsoft-plans-to-repurchase-up-to-another-40-billion-in-stock

Microsoft Corp.’s board authorized the buyback of an additional $40 billion of stock on top of an existing $40 billion repurchase program it will finish by year’s end, keeping up a strategy of returning money to shareholders as its cash pile grows.

The Redmond, Washington-based software maker also raised its quarterly dividend by 8.3 percent to 39 cents a share, according to a statement Tuesday. The company’s stock has jumped 31 percent in the past year, giving Microsoft a market capitalization of $442.7 billion — the third-largest in the Standard & Poor’s 500 Index.

Chief Executive Officer Satya Nadella has been working to jump-start revenue growth — which analysts project will be 2 percent this fiscal year after a decline of 2 percent the previous year — amid continued restructuring efforts related to the failed acquisition of Nokia Oyj’s phone business. Since Nadella took the helm in 2014, the company’s cloud and internet-based Office software businesses have fueled growth and boosted investor optimism. The stock this year has been hovering close to a 1999 record high.

“This reflects a continuation of the company’s pledge of returning value to shareholders via dividends and buybacks,” said Sid Parakh, a fund manager at Becker Capital Management, which owns Microsoft stock. “This implies continued confidence in current and future business trends.”

Given Microsoft’s “debatable history with acquisitions,” this kind of capital-return program signals to investors that the company is being disciplined in how it spends money, Parakh said.

Microsoft shares rose about 1 percent in extended trading after the announcement. They slipped less than 1 percent to $56.81 at the close in New York.

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“Microsoft Corp.’s board authorized the buyback of an additional $40 billion of stock on top of an existing $40 billion repurchase program it will finish by year’s end, keeping up a strategy of returning money to shareholders as its cash pile grows.”

the “cash pile”..

how much are they holding these days?

“The company’s stock has jumped 31 percent in the past year, giving Microsoft a market capitalization of $442.7 billion — the third-largest in the Standard & Poor’s 500 Index.”

401

~ by seeker401 on September 26, 2016.

One Response to “Microsoft plans another $40 billion buyback”

  1. Reblogged this on World Peace Forum.

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