Step 1: Effect of cutting the magnet.
When a bar magnet is cut into two equal parts, each part has magnetic moment $\dfrac{M}{2}$.
Step 2: Orientation of the two parts.
The two pieces are arranged one above the other with opposite poles aligned vertically.
Thus, their magnetic moments are equal in magnitude but opposite in direction.
Step 3: Resultant magnetic moment.
\[
M_{\text{net}} = \frac{M}{2} - \frac{M}{2} = 0
\]
Step 4: Conclusion.
The magnetic moment of the combination is zero.