[MRM]

Microsoft isn't buying back their shares for the dividend. They're buying them back because they think their own stock will appreciate more and will be less risky than any other investment they can make. They're trading near a 52 week low in a bear market. At one point today they were up a dollar or so. That's 5%. If they get back up to their $37 52 week high, they'll almost double their money. If it takes them 5 years to get back up to $37 they'll still have almost a 20% yearly return.

Someday the market will turn around and someday Microsoft will again prodce a product that someone buys because they want it, not because they have to. When that happens, Microsoft will be a good stock to own again. Microsoft is making the bet that the day will come sooner rather than later.