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July 23, 2004
Mark Cuban on the Microsoft Dividend
In Microsoft, Dividends and Stock Buybacks - Blog Maverick - www.blogmaverick.com Mark does a good job with the issue. He loves dividends (as I do) and hates buybacks (which I disagree with). In the end buybacks drive up the stock price. I know they are contrary messages, but they work. The problem with this one is that it is over 4 years and there is no way to game its impact. Microsoft has been buying their stock to fund the option pool for a long time. They typically do it one day in the market and tell the market when they are doing it. The price usually goes up a little that day. For this buyback I don't think they will do it that way. Their objective here is to get the most shares off the market for the lowest price. Not pay shareholders money, that is what the dividend is for. Not sure the stock will really feel this buy-back. I am a seller.
Posted by Martin at July 23, 2004 3:52 PM
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