Microsoft (Nasdaq: MSFT) announces dividend increases and share buy backs. As previously predicted the Financial Skeptic called for dividend increases and share buy backs just to keep investor
enthusiasm err engagement err addiction up there.
The move is essentially a “Candy is Dandy but Sex Wouldn’t Rot your Teeth” gambit. By increasing the dividend you more deeply engage income investors and protect the floor. By purchasing shares you enhance the financial engineering. but this is all Dandy Candy.
The real sex will come when the new sovereign is found and proclaimed. There will be a magnificent royal procession allowing the subjects to see the new king and proclaim allegiance. Hopefully the sex will not rot our teeth.
It’s all about Steve Ballmer’s replacement. Until we know and have confidence there is a Black Swan Co-relation which causes the market to shiver unexpectedly.
George Gutowski writes from a caveat emptor perspective. He does not like shivering unexpectedly. Follow him on Twitter @financialskepti