Microsoft's Dividend: A sign of maturity
Biz. Week | at | by Mike
Though it's small by Colossus of Redmond standards, the cash payout says a lot about how Gates & Co. sees itself these days. At Microsoft's annual meetings each November, one shareholder question is as predictable as the fall that rains in Redmond: When will the software giant issue a dividend? Even as Microsoft's cash holdings ballooned to $40 billion, Chairman William H. Gates and CEO Steven A. Ballmer could always be counted on to recite the standard company line: The board routinely considers the matter but wants to keep the cash for contingencies. Yet on Jan. 16, the board changed its mind. Microsoft will split its stock on Jan. 27 and pay an 8-cent per share annual dividend on Mar. 7 to shareholders of record as of Feb. 21.