TMCnet News
Citigroup Does Not Believe Microsoft's Dividend Yield Will Double As Soon As Some Expect (C,MSFT)Sep 20, 2010 (SmarTrend News Watch via COMTEX) -- Citigroup said its analysis shows that Microsoft (NASDAQ:MSFT) is currently paying out about 50% of its U.S. free cash flow generation and while they expect that could be raised materially, they don't believe its dividend yield will double as some hope. U.S. Software analysts Walter Pritchard said, "Between dividends and buyback, Microsoft has returned more cash to shareholders than any other large cap tech peer... over the last 5 years, the company has returned 100% of its free cash flow, with 3/4 of this from buybacks... yet our conversations with investors suggest many would like to see Microsoft lift its buyback activity or boost its dividend further." Pritchard added, "The company will likely want to leave spare US free cash flow to ensure future dividend increase capacity and preserve some buyback ability." SmarTrend currently has Microsoft in a Downtrend. Since 2008, SmarTrend subscribers trading Microsoft using our alerts outperformed the stock by 220%. We are monitoring these developments and will alert subscribers to any change in trend. Write to Chip Brian at [email protected] --------------------------------------------------------------------------------------------- SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup [ Back To TMCnet.com's Homepage ] |