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Stocks M / Microsoft Corp.
|Subject: Re: Letter to the Board||Date: 11/16/2012 9:13 PM|
|Author: Philipo||Number: 156056 of 157093|
Readers digest version <phew> Dan tells MS:
"I believe the following policies should be instituted as soon as possible:
•Target at least 60% of free cash flows paid out in dividends.
•Repurchase shares with available excess cash at a price not to exceed an enterprise value per share of 15 times free cash flow.
•Bring all excess foreign-earned cash home to the U.S., for distribution to shareholders via dividends or share repurchases.
Taking the above actions makes a higher market valuation for Microsoft shares a virtual certainty. If Microsoft raised its dividend by 50% immediately, and instituted a policy of paying out 60% of its free cash flow as dividends, a 40% rise in the share price wouldn't be an unreasonable expectation. "
Not sure how this washes against MS's rainy day worries...so I wouldn't hold my breath for them to jump to these changes - MS is a stubborn slow moving beast for better and worse.
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