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View Full Version : Microsoft pays first ever stock dividend


peter2002
Jan 17, 2003, 11:31 AM
With $43 billion in the bank, Microsoft finally decided to pay its first ever stock dividend to its shareholders.

The payout will cost Microsoft about $855 million, of which Bill Gates, the largest shareholder with over 1 billion shares, will receive about $98 million.

The dividend, which comes as a sweeping tax plan by President Bush has focused attention on the subject, will be 16 cents a share before the split, or 8 cents a share on a post-split basis. It is to be paid March 7 to shareholders of record as of Feb. 21.

http://seattletimes.nwsource.com/html/businesstechnology/134617101_microsoft170.html

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$98 million and probably tax free (if Bush's new tax plan passes) for BG, must be nice!

This scares other tech giants which don't usually give out any dividends. Shareholders may start to demand that other tech giants to give out dividneds or their board or CEO could be voted out by shareholders.

Pete :)

Sun Baked
Jan 17, 2003, 11:43 AM
[edited to protect the guilty]

peter2002
Jan 17, 2003, 12:06 PM
If Bush's plan passes, Microsoft will not be taxed on the $98 million dollars - but Bill Gates WILL be taxed on it.

No, you are wrong. Bush's new tax cut plan would totally eliminate dividend taxes that shareholders pay. Currently, these are taxed up to 39%, depending on your tax bracket.

Pete

Sun Baked
Jan 17, 2003, 01:29 PM
Oops got it backwards, but the dividend is still after tax dollars that are being distributed.

Would be nice if they capped amount of dividends that escape tax to individuals.

Would be more sane to just whack it at the corp. level instead, but that's not govt.

MS sure is making a bold move on a "proposal" though.