Microsoft (NASDAQ:MSFT) stock has done very well this year, up almost 35% so far. MSFT stock is still reasonably priced despite the stock rise. Its forward price-to-earnings ratio is at 23 times. MSFT stock sports a healthy 1.34% dividend as well. Investors may not know that one of the main reasons for MSFT stock’s success is its large share buyback program. In the year ending June 30, MSFT spent over $19.5 billion on share buybacks. This is an increase of 82% over the previous 12 months.
The share buybacks were even larger than the $13.8 billion MSFT spent on dividends in the year to June. What was the main reason for this? Microsoft produced a massive $38.3 billion in free cash flow (FCF) in the year to June. Microsoft spent $33.35 billion on share buybacks and dividends from this FCF. Keep in mind that FCF already includes money spent on huge costs and investments. It includes $16.9 billion spent on R&D, $18.2 billion in marketing, all of MSFT’s operating costs. It also includes $13.9 billion spent on capital expenditures.
Source: InvestorPlace
Related Articles:
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
- 3 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 8 Dividend Growth Stocks With Very Little Debt
Microsoft Stock Benefits From Large Buybacks
Posted by D4L | Sunday, September 29, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.