Dividend Stock Analysis: Microsoft

Microsoft (MSFT), the developer of the Windows operating systems, Office, and XBox, is one of the leading software companies in the world. Sales have grown at 10.5%. Net Income has grown at 11%. Dividend Yield: 2.37%. Five-Year Dividend Growth Rate: 11%. Balance Sheet: Very Strong. With a P/E of only 11.5, a strong balance sheet, and an immense but arguably eroding competitive moat, Microsoft is priced for no growth. If the company can simply maintain current levels of revenue and income from this point forward, an investment would perform reasonably well due to dividends and share repurchases. If, on the other hand, the shift towards cloud computing and mobile computing damages Microsoft revenue and income, then shareholders will likely underperform.[Click all to enlarge] OverviewMicrosoft is among the largest software companies in the world. With $62.5 billion in revenue and $24.1 billion in operating income in 2010, the company... Read more

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