Comment Re:Will boost whole stock market (Score 1) 411
In assessing the upward movement of MS stock, you have to take into account this dividend's effect on future revenue. MS currently makes a lot of money from Interest on their cash. The loss of that revenue will discount the upward movement potential.
You also need to consider the less tangible impacts of a payout like this. MS is essentially saying that they cannot beat the markets rate of return with this money (i.e. their potential expansion and growth opportunities are not very lucrative or simply non-existent). The perception that MS might not be able to expand much more will also discount an upward swing on the share price.
I would be surprised to see MS rise much more than $1, maybe $1.50.
You also need to consider the less tangible impacts of a payout like this. MS is essentially saying that they cannot beat the markets rate of return with this money (i.e. their potential expansion and growth opportunities are not very lucrative or simply non-existent). The perception that MS might not be able to expand much more will also discount an upward swing on the share price.
I would be surprised to see MS rise much more than $1, maybe $1.50.
