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Author: Philipo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 157030  
Subject: Re: Letter to the Board Date: 11/16/2012 9:13 PM
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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
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