Friday, January 17, 2003

In a Surprise, Microsoft Says It Will Pay Dividends

In a Surprise, Microsoft Says It Will Pay Dividends "eclaring its most threatening legal problems over and its business strong, Microsoft surprised Wall Street yesterday by announcing it would begin paying a dividend. ...
Today, Microsoft sits on a cash pile totaling $43.4 billion, and its business generates cash at the rate of $1 billion a month.
"This is a surprise, but it mostly reflects the economics of the business," said Charles di Bona, an analyst at Sanford C. Bernstein. "It is not a sign that this is the end of growth for Microsoft. It is a recognition that this company is throwing off more cash than anyone has ever seen."...
"Microsoft has bets down all the possible squares," said Roger Kay, an analyst for IDC. "If anybody does well, Microsoft does well."
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