Analysts Slobbering Over Microsoft's Cash Mountain

from the more-and-more-pressure dept

There's been more and more talk in the past year or so about pushing Microsoft to start handing back some of their ridiculously large cash reserves in the form of dividends. With the latest economic stimulus proposal from the Bush administration making dividends more attractive, the pressure on Microsoft is expected to increase quite a bit, as investors want to get their hands on some of Microsoft's billions. While, admittedly, $40 billion is on the insane side of things, I'm not convinced dividends are the best way for Microsoft to spend their money. It makes sense for investors to ask for the money, but it might not make the best long term strategic sense for Microsoft as a company. For example, I'm sure they would prefer to use all that cash to subsidize efforts into new markets, where they can undercut everyone until all the competitors have gone out of business.

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