Homework Help is Here – Start Your Trial Now!
Business
Accounting
Do all companies pay dividends? What is another way stockholders can get a return on their investment? Did Microsoft always pay dividends, and if not why would they start?

Do all companies pay dividends? What is another way stockholders can get a return on their investment? Did Microsoft always pay dividends, and if not why would they start?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do all companies pay dividends?

What is another way stockholders can get a return on their investment?

Did Microsoft always pay dividends, and if not why would they start?

Microsoft Declares Annual Dividend and Announces Two- for-One Split on Common Stock January 16, 2003 || f in REDMOND, Wash., Jan. 16, 2003 – Microsoft Corp. today announced that its Board of Directors declared an annual dividend and approved a two-for-one split on Microsoft common stock. The annual dividend of $0.16 per share pre-split ($0.08 post- split) is payable March 7, 2003, to shareholders of record at the close of business on Feb. 21, 2003. As a result of the stock split, shareholders will receive one additional common share for every share held on the record date of Jan. 27, 2003. "Declaring a dividend demonstrates the board's confidence in the company's long-term growth opportunities and financial strength. We are especially pleased to be able to return profits to our shareholders, while maintaining our significant investment in research and development and satisfying our long-term capital requirements," said John Connors, chief financial officer at Microsoft. Upon completion of the split, the number of common shares outstanding will be approximately 10.8 billion. The additional shares will be mailed or delivered on or about Feb. 14, 2003, by the company's transfer agent, Mellon Investor Services. This is the ninth time Microsoft's common stock has split since the company's initial public offering on March 13, 1986. "We believe that the split, combined with an annual dividend, will make Microsoft stock even more attractive to a broader range of investors. We see enormous potential for growth in the software and technology sector, and remain committed to attracting investors who share this enthusiasm and take a long-term view of the company's growth opportunities," Connors said.
Transcribed Image Text:Microsoft Declares Annual Dividend and Announces Two- for-One Split on Common Stock January 16, 2003 || f in REDMOND, Wash., Jan. 16, 2003 – Microsoft Corp. today announced that its Board of Directors declared an annual dividend and approved a two-for-one split on Microsoft common stock. The annual dividend of $0.16 per share pre-split ($0.08 post- split) is payable March 7, 2003, to shareholders of record at the close of business on Feb. 21, 2003. As a result of the stock split, shareholders will receive one additional common share for every share held on the record date of Jan. 27, 2003. "Declaring a dividend demonstrates the board's confidence in the company's long-term growth opportunities and financial strength. We are especially pleased to be able to return profits to our shareholders, while maintaining our significant investment in research and development and satisfying our long-term capital requirements," said John Connors, chief financial officer at Microsoft. Upon completion of the split, the number of common shares outstanding will be approximately 10.8 billion. The additional shares will be mailed or delivered on or about Feb. 14, 2003, by the company's transfer agent, Mellon Investor Services. This is the ninth time Microsoft's common stock has split since the company's initial public offering on March 13, 1986. "We believe that the split, combined with an annual dividend, will make Microsoft stock even more attractive to a broader range of investors. We see enormous potential for growth in the software and technology sector, and remain committed to attracting investors who share this enthusiasm and take a long-term view of the company's growth opportunities," Connors said.
In connection with the dividend, the company is introducing a Direct Stock Purchase Program and a Dividend Reinvestment Program, offering both new investors and current stockholders the option of receiving Microsoft's annual dividend in cash or having it automatically reinvested. This program is administered by Mellon Investor Services, not by Microsoft. More information about the program and enrollment forms are available by calling Mellon Investor Services at (800) 285-7772 (toll- free), contacting Mellon by e-mail at msft@melloninvestor.com, or visiting Mellon's Web site at http://www.melloninvestor.com. Founded in 1975, Microsoft (Nasdaq "MSFT" ) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device. Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft's corporate information pages. Shareholder and financial information is available at http://www.microsoft.com/msft.
Transcribed Image Text:In connection with the dividend, the company is introducing a Direct Stock Purchase Program and a Dividend Reinvestment Program, offering both new investors and current stockholders the option of receiving Microsoft's annual dividend in cash or having it automatically reinvested. This program is administered by Mellon Investor Services, not by Microsoft. More information about the program and enrollment forms are available by calling Mellon Investor Services at (800) 285-7772 (toll- free), contacting Mellon by e-mail at msft@melloninvestor.com, or visiting Mellon's Web site at http://www.melloninvestor.com. Founded in 1975, Microsoft (Nasdaq "MSFT" ) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device. Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft's corporate information pages. Shareholder and financial information is available at http://www.microsoft.com/msft.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Stock Market Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS