Why Dividend Investors Should Be Cheering Microsoft’s LinkedIn Acquisition

Posted On October 4, 2016 4:03 am

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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Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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