The Growing Mountain of Corporate Cash

Microsoft made headlines recently when the company surprised analysts and investors by announcing the most generous one-time corporate dividend in history. By paying out $3 per common share, or $32 billion to its shareholders, the company passed along more than half of the $60 billion in cash it had accumulated.

Many of the leading corporations in America appear to be in the same position: They are taking in more cash than they are spending. As the New York Times recently reported, American companies have more cash on .....