As a good friend of mine said, “the stock market is voodoo to me.” Yep.
(First, a little voluntary disclosure: I do hold some Microsoft stock. Not a lot, but enough that I keep an eye on it.)
Microsoft announced that they would be issuing a dividend of $3 per share at the end of this year. Additionally, they announced that they would be doubling their standard dividend, and increasing the frequency of distributions. Also, they announced probably the largest stock buyback in the history of enterprise on earth.
Wall Street’s response?
OK, so admittedly, this negatively impacts their massive cash reserves (about 60 billion dollars at last count) but they will still have more cash reserves than the second, third, and fourth companies on the Forbes 400 combined… so, uh… they’re not gunna run out of cash anytime soon.
Their stock has been pretty much flat for the last couple years. I’m starting to get a little antsy.