Microsoft boosts dividend 25 percent to attract new investors
Summary: Microsoft's share price is stagnating, and long-term investors are asking for a greater return. Is it time for Steve Ballmer to go?
In a bid to attract new investors, the software giant is giving more back to its shareholders to try and shift its stagnating share price. This will be the sixth time giant has raised its dividend since it introduced an 8 cents per share payment to shareholders in 2004.
Microsoft makes tens of billions, but current long-term investors are not happy, as many would have been hoping for a greater payout from the company's short-term investments. Long term investors are frustrated by a near rock-steady share price which offers little to no return.
The move is unlikely to boost the price of its shares, but may appease at least some shareholders.
Though the dividend is hardly to write home about, it is raised by a quarter from $0.16 a share to $0.20 cents a share -- topping the 23 percent or $0.03 a share dividend increase made a year ago.
Microsoft is continuing its $40 billion share repurchase program, which was approved by the company's board in fall 2008, with only $12.2 billion remaining as of July this year.
Shares reacted on Tuesday with Microsoft's share price rising $0.12 cents to $27 in extended trading.
Compared to other technology companies, Microsoft is in the mid- to high-range of other large technology firms on the playing field. Compared to Google and Apple, which do not pay dividends to its shareholders, Microsoft's failure to capitalise on the markets it is investing in and part of is highly reflected in its share price.
With this, it should lead to further questions about Ballmer's tenure over the past few years, particularly since he was made chief executive officer in 2000. Just by counting on one hand, Microsoft has missed search, belly-flopped music and its Zune product, and couldn't compete in the social media world.
Did Ballmer miss the mark and lead Microsoft down a rocky path to a point where the company's share price stagnates? Yes.
But can Ballmer steer the direction of the company back down a path where it does not rely mostly on enterprise licensing and sales of its desktop operating systems -- still only a portion of Microsoft's total product and service line?
Probably not.
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Talkback
RE: Microsoft boosts dividend 25 percent to attract new investors
RE: Microsoft boosts dividend 25 percent to attract new investors
the only thing Apple makes better than MS is phones and that will change when Mango comes out. Apple's is on top because people chew up their markerting
RE: Microsoft boosts dividend 25 percent to attract new investors
All Windows and MS has is inertia and that is slowly eroding as Mac sales are up and Windows are down.
RE: Microsoft boosts dividend 25 percent to attract new investors
[i]Really? Most unbiased comparisons of Lion and Win 7 put Lion as the better OS.[/i]
Wow... whatever you're smoking, pass it this way.
No; he's doing a fine job.
Don't worry, Spock thinks the changing titles is a real winner
Bad performance since the antitrust rulings against them, which coincided with Steve B ascension to the throne. now a company without a monopoly they can abuse and no vision. Reduced to buying back their own stock and inflated dividends so insiders can offload their stock options.
The MCSE keeps defending them, what a laugh.
RE: Microsoft boosts dividend 25 percent to attract new investors
umm MSFT hasteadilyiy increased profits, increased divs and increased the number of Billion dollar products.
If you knew anything more than the average blogger you would know that these days MSFT sells tens of billions of dollars of software that are NOT win7 or Office every year.
But perhaps you did not know that. perhaps you did not know that MS Server products are crushing comp and cashing in.
Evilcart, charging more for same products
Little success in new markets however, whilst the competition goes crazy. This is the driver behind their stagnant stock prices.
Slash the R&D budget returning the money to shareholders; ride the windows and office products for as long as you can.
Used the ribbon interface again today, what a laugh. More machines reimaged because of malware. Plenty of talk of their next OS, still year away, and how it promises to catchup to what's in the market today.
RE: Ruining the company.
RE: Microsoft boosts dividend 25 percent to attract new investors
RE: Microsoft boosts dividend 25 percent to attract new investors
Good for investors
Dinosaur poop
RE: Microsoft boosts dividend 25 percent to attract new investors
Get Steve out and Steve in...
RE: Microsoft boosts dividend 25 percent to attract new investors
I hadn't thought about this possiblility before, but it sounds good to me. I think people are just sick of hearing Ballmer's crap at this point in time. Too many failures.
RE: Microsoft boosts dividend 25 percent to attract new investors
The article wansn't written to reflect the facts or the reality on the
The article, just like most ZDNet articles, are written with the intent to inflame and to bring in as many clicks as possible to the site.
Re: It seems as if this article was written by someone who hasn't kept up w
RE: Microsoft boosts dividend 25 percent to attract new investors