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.B
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra