In 3 pages - Research these companies’ dividend payment policies (you should use both your own analysisof dividend payment policy, and external references such as newspaper articles, financial blog...

QUESTION:
Why did Microsoft decide in 2004 to double its cash dividend and buy back up to $30 billion of
the company’s stock over the next four years?
SOLUTION:
The Microsoft Corporation on July 20, 2004 announced that the dividend of $0.08 per share per
quarter has been approved by the board of directors and the company is planning to buy up to $
30 billion of the company’s stock over the next four years and a special dividend of $3 per share.
The company was confident that there will long term growth in terms of the revenue, profits and
shareholders value by way of innovation and execution. The company’s business at that time was
growing quickly and the company was quite successful in handling a considerable portion of
legal exposure as well. The company was confident that they can provide $75 billion in total
value to shareholders in the next four years. At that time the company was having sufficient cash
and the buy back didn’t affect the company’s commitment to research and development. The
company was seeking a place as one of the top innovators in the technology industry and filed
more than 3,000 patents during that year. The company resolved many legal issues surrounding it
and this led to clarifying the Microsoft’s legal and related business risk. The legal uncertainties
faced by the company were reduced to a great extent. The company moved from its current
annual dividend of $0.16 to quarterly dividend of $0.08 per share and this would led to the
doubling of annual dividend to $3.5 million. According to the company's most recent quarterly...