Microsoft just announced a $US40 billion stock buyback, and a 22% dividend increase.
This news comes just days before Microsoft has its financial analysts meeting.
The stock buyback is a replacement for the previous buyback program which was set to expire at the end of September.
The stock is up just 1.67% on the news.
This share buyback is just the latest in a string of moves from Microsoft.
First, the company announced a huge re-org. Then a few weeks later CEO Steve Ballmer retired. Then, shortly after, it bought Nokia.
This Thursday, Ballmer and other executives meet with financial analysts. It will be an interesting meeting since so much has happened at the company.
We don’t think investors are going to be all that wowed by this buyback program, since its just replacing the company’s previous $US40 billion buyback plan. Analysts will probably push for a bigger buyback.