Microsoft sets dividend, stock split

Discussion in 'Off Topic' started by Ozzy, Jan 17, 2003.

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  1. clubber

    clubber

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    629
    ROFLMAO! You're MY kind of security analyst!
  2. buddyyy

    buddyyy

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    They saw all the other tech stocks doing reverse splits and they figured they wouldn't be able to do one if they didn't get the price down?

    They heard everyone talking about how they were going to buy (or bought) CSCO, INTC,SUNW, and ORCL when they were selling for single digits and they didn't want to be left out?

    It will create more smoke when they reprice their employee stock options?

    $160 - $16 all those numbers - it gets confusing.[​IMG]
  3. clubber

    clubber

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    629
    Actually, you'd get $160, not $16. But Buddyyy's point is still valid. Anyone investing in a stock for dividends, taxable or not, would want to get more than 1% or so in dividends. MSFT is still a capital gains play.

    If you're looking for dividends, makes a lot more sense to look at JPMorgan Chase, or Philip Morris, both of which, I believe pay over 5% annually.

    No one has really talked about the OTHER half of the equation, namely what sense did it make to split the stock? It was only $50 to begin with.
  4. buddyyy

    buddyyy

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    If you own 1,000 shares of MSFT (51.46 Down 7% or 3.89 at the close today) you get $16.00 a year

    I guess that helps to offset the $3,890 you lost today alone.

    But hey pretty soon you will have 2,000 shares.
  5. howardnotstern

    howardnotstern

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    $40 billion is a hell of a lot of cash--what the hell are they supposed to do with it now they can't get easy returns out of stock market investments?
  6. pjorourke

    pjorourke Thinks he's Caesar's Wife

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    Of course not! Tax rates don't change behaviour
  7. Slinky Bender

    Slinky Bender The All Powerful Moderator

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    Of course, the plan to change the way dividends are taxed has nothing to do with this...
  8. Jorel

    Jorel

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    My god. Exactly what I was thinking! This must say something deep about future growth opportunities.
  9. hot4chicks

    hot4chicks

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    Lets see, the CFO says within the last week, he would never pay a dividend and now does. I bet its related to their settlement talks with DoJ.

    The bad news is that MSFT , by paying dividends, is saying that their shareholders have a better use for the money than MSFT does. An end of an era.
  10. Ozzy

    Ozzy

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    15,725
    ASSOCIATED PRESS

    SEATTLE, Jan. 16 — Microsoft Corp. announced its first-ever dividend to shareholders Thursday and said it will issue a two-for-one stock split. Heeding some investors’ calls to share in the Redmond software giant’s $40.5 billion in cash, the company said it will pay an annual dividend of 16 cents per share on a pre-split basis.