The Motley Fool isn’t fooled by Microsoft’s announcements yesterday: The company also declared a 2-for-1 stock split. Seriously now, when’s the last time a company announced a stock split on the heels of news that would normally sink a stock organically?
on the dividends:
The company will earn far more interest on its wad of greenbacks than it pays out to investors as part of its new annual dividend policy. It’s just a token gesture — a case of throwing good money at bad news. They’re not fooling us!