IB Net Payout Yields Model

Microsoft: $40 Billion To Nowhere

Microsoft announced an 11% dividend hike and a $40 billion share buyback.
The tech giant failed to impress with its capital return plans.
The stock isn't likely to see a net payout yield to top the existing 3% level.
Don't own Microsoft for this capital return plan, and actually avoid the stock on the negative ramifications of the weak signal.
The announcement of a large share buyback might grab headlines and drive a stock higher in the short term, but investors really need to break down the impact before rushing to buy a related stock. The big $40 billion share buyback from Microsoft (MSFT) is a prime example of form over substance. In fact, investors should really question if the tech giant should repurchase shares at these levels and whether this move signals a top in the stock.
Read the full article on Seeking Alpha. 
More commentary - WhoTrades
Disclosure: Long AAPL. Please review the disclaimer page for more details. 


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