OMG... Did (you know where) freeze over???

[GonePostal]

WoW!


Microsoft Dividend

[Paul Stagg]

There is currently alot of emphasis on dividends.. it will probably boost the stock price.

[Y2A]

Generally it hurts the stock price when you declare a dividend since it lowers the company net value.

[Tiare]

Dividends do not hurt or help stock prices per se, it is dependent on investor perception of the company as a whole.

-Company is in a growth cycle needing more capital for growth --> dividends hurt the stock.

-Company is in a stable cycle with enough capital for growth --> dividends are optional.

-Company is in any cycle with earnings exceeding groth capital needs --> dividends are necessary for investor value.

0.3% dividend yield is pointless. This is Microsoft attempting to appeal to the investors that have traditionally seen dividends in cash flow company as being an indicator of corporate stability.

Personally I don't care about the dividends that MSFT puts out
what I want to know is where they developed decreased sales
(as compared to outlook) and increased EPS. This can indicate
a change in the companies reporting or an increase in the
company efficiency or a change in the sector environment or the
economy or a number of other things.

[Y2A]

Originally posted by Tiare
Dividends do not hurt or help stock prices per se, it is dependent on investor perception of the company as a whole.

-Company is in a growth cycle needing more capital for growth --> dividends hurt the stock.

-Company is in a stable cycle with enough capital for growth --> dividends are optional.

-Company is in any cycle with earnings exceeding groth capital needs --> dividends are necessary for investor value.

0.3% dividend yield is pointless. This is Microsoft attempting to appeal to the investors that have traditionally seen dividens in cash flow company as being an indicator of corporate stability.

Agreed on all points, well said.

[Paul Stagg]

Originally posted by Y2A
Generally it hurts the stock price when you declare a dividend since it lowers the company net value.

You are assuming investors are basing their descisions on value.

Many (most) don't. Ref: Amazon.

With the issues facing the average investor now (volatility in the market), there is a lot of emphasis on stocks that will produce income.

[Y2A]

Originally posted by Paul Stagg


You are assuming investors are basing their descisions on value.

Many (most) don't. Ref: Amazon.

With the issues facing the average investor now (volatility in the market), there is a lot of emphasis on stocks that will produce income.

Youre right, also helping that is the fact that the interest rate is so damn low that it makes dividend producing stock more attractive.

[Tiare]

Originally posted by Paul Stagg


You are assuming investors are basing their descisions on value.

Many (most) don't. Ref: Amazon.

With the issues facing the average investor now (volatility in the market), there is a lot of emphasis on stocks that will produce income.

By 'most' investors, I'm assuming that you mean volume of
people not money. A million people with $10 each make much
worse decisions than 1 person with $10mm.

Real money is not concerned about the stock market right now but rather the economy and re-investment risks, IMO.