Why Dividend Investors Should Be Cheering Microsoft’s LinkedIn Acquisition
Given Microsoft’s abysmal history of giant, value destroying acquisitions it’s understandable that many investors cringed when the company announced it was paying $26.2 billion in its largest ever deal to acquire LinkedIn. However, despite a 50% premium at the time, when you actually crunch the math it becomes obvious that Microsoft actually got a fantastic deal for this future free cash flow printing machine. More importantly, find out why, by acquiring LinkedIn, Microsoft is setting itself up for years more of strong dividend growth, AND market beating total returns; outperformance that simply wouldn’t be possible if the company hadn’t made this bold move.
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