Wednesday, October 15, 2014

Returns from Microsoft since it went public.

Question:   Microsoft Corporation went public on March 13, 1986.   What would be he value of 100 shares in Microsoft purchased on the day it went public?

What is the value of the dividends received from holding this stock?

Answer:    The data needed for this calculation was obtained from Yahoo Finance.

Data on dividends and stock splits by Microsoft Corporation:

The other piece of information that I need for this problem is the current stock price, which I also got off yahoo.    When I looked at the stock on October 14 it was at $44.05.   (Today it is a bit lower.)


Answer:   Microsoft stock split 9 times since going public.   Seven of the splits were 2 to 1.   Two of the splits were 1.5 to 1. 


Microsoft Stock Split History
Date
Ratio
18-Feb-03
2
29-Mar-99
2
23-Feb-98
2
9-Dec-96
2
23-May-94
2
15-Jun-92
1.5
27-Jun-91
1.5
16-Apr-90
2
21-Sep-87
2



The 100 original shares are now 28,800 shares.  (100 x 27 x 1.52 = 28,800).  

At the current stock price of  $44.05 this amounts to $1,268,640.

The dividend history for an investor that purchased 100 shares of Microsoft at the time the firm went public and kept the shares until today are presented in the table below.




Date
Dividends Per Share
Number of Shares
$ Dividends
19-Aug-14
0.28
28800
8064
13-May-14
0.28
28800
8064
18-Feb-14
0.28
28800
8064
19-Nov-13
0.28
28800
8064
13-Aug-13
0.23
28800
6624
14-May-13
0.23
28800
6624
19-Feb-13
0.23
28800
6624
13-Nov-12
0.23
28800
6624
14-Aug-12
0.2
28800
5760
15-May-12
0.2
28800
5760
14-Feb-12
0.2
28800
5760
15-Nov-11
0.2
28800
5760
16-Aug-11
0.16
28800
4608
17-May-11
0.16
28800
4608
15-Feb-11
0.16
28800
4608
16-Nov-10
0.16
28800
4608
17-Aug-10
0.13
28800
3744
18-May-10
0.13
28800
3744
16-Feb-10
0.13
28800
3744
17-Nov-09
0.13
28800
3744
18-Aug-09
0.13
28800
3744
19-May-09
0.13
28800
3744
17-Feb-09
0.13
28800
3744
18-Nov-08
0.13
28800
3744
19-Aug-08
0.11
28800
3168
13-May-08
0.11
28800
3168
19-Feb-08
0.11
28800
3168
13-Nov-07
0.11
28800
3168
14-Aug-07
0.1
28800
2880
15-May-07
0.1
28800
2880
13-Feb-07
0.1
28800
2880
14-Nov-06
0.1
28800
2880
15-Aug-06
0.09
28800
2592
15-May-06
0.09
28800
2592
15-Feb-06
0.09
28800
2592
15-Nov-05
0.08
28800
2304
15-Aug-05
0.08
28800
2304
16-May-05
0.08
28800
2304
15-Feb-05
0.08
28800
2304
15-Nov-04
3.08
28800
88704
23-Aug-04
0.08
28800
2304
15-Oct-03
0.16
28800
4608
19-Feb-03
0.08
28800
2304




Observations:  

Microsoft has paid dividends since February 19 2003.

Total dividends for the 100-share investor are $269,280.

The dividends received over the last four quarters were $32,256.





No comments:

Post a Comment