Microsoft pays another regular dividend
Microsoft has announced a regular quarterly dividend for shareholders. The board has declared a dividend of $0.08 per share, payable 10 March 2005.
It’s not the first time Microsoft has paid out a dividend to shareholders – that was announced back in July, Microsoft declares dividends all round, when Microsoft first broke with its traditions and paid out not one but two dividends.
The significance of the payout? Just that it is an another indication that Microsoft, as a company, is maturing into a more traditional American corporation: it is no longer the rising young pretender who could keep investors (and employees) happy simply with an ever-increasing shares price.
Despite some recent high profile payments to competitors, Microsoft is still a cash-rich enterprise. Following the latest round of legal settlements- $5.1bn was tallied as the total cost for its numerous anti-trust lawsuits – there is less need to need to sit on a war chest.
It was back in July that the software giant announced plans for a quarterly dividend, a four-year stock buyback plan and a special one-off dividend for shareholders.
‘As we looked at our cash-management choices, our priorities were to increase our regular payments to shareholders, increase our stock-buyback efforts given our confidence in the company’s growth prospects, and distribute additional resources in the form of a special one-time dividend,’ said CEO Ballmer at the time.