Microsoft (MSFT) Needs to Show Shareholders 'The Money' - Analyst

It's time for Microsoft (NASDAQ: MSFT) to show shareholders the money... again.

Analysts at Goldman Sachs said while all eyes are on Microsoft's upcoming BUILD Developer conference next week, the Board will also meet this month to evaluate its plans for the distribution of cash to shareholders. The plans could include a potential new buyback and a dividend increase.

While the company has talked about its desire to grow its dividend in line with prior year operating income, the market is expecting a much more pronounced increase, Goldman notes.

With FY11 operating profits rising 12%, the firm believes a dividend increase in the range of $0.18 - $0.20 per quarter is reasonable. This would be up 13-25% from the current level of $0.16 per share per quarter. Goldman also expects a buyback authorization in the $40 billion range will be announced.

Goldman reiterated its Neutral rating and $29 price target.

For more ratings news on Microsoft click here and for the rating history of Microsoft click here.

Shares of Microsoft closed at $25.80 yesterday.

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