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Article: Cash rich Microsoft spells out its plans on shareholder initiatives for the next four years.(Analysis)
- Article from:
- RETHINK IT
- Article date:
- September 1, 2004
CopyrightCOPYRIGHT 2004 Rethink Research Associates. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Microsoft has decided what to do with its $56bn pile of money, and has plans over the next four years to spend more than $75bn on shareholder initiatives.
In effect this will make the Microsoft shares desirable--not due to the immense capital growth that Microsoft has achieved in the past but because of a combination of regular and one-off dividends, and shares buy back programs.
The effect will be to drive up Microsoft shares, at least between now and the point in November when the company plans to give out $3 for every share that's out there, amounting to a $32bn handout.
Longer term it will be the scarcity of Microsoft shares--as the company ...