Is Microsoft Corporation (MSFT) a Buy?

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Furthermore, Microsoft has accelerated its policy of returning cash to shareholders.  The company has more than doubled its dividend over the last five years, and the company bought back almost $3.3 billion in shares during the first six months of fiscal 2013.  At current prices, the stock yields 3.35%, more than 130 basis points better than the ten-year Treasury bond.

The Bottom Line

Microsoft has a high yield, a solid share buyback program and a great balance sheet.  The company’s operative performance has been disappointing lately, but with a cheap valuation, the stock affords investors a margin of safety.  I’ll be placing Microsoft on my watch list, and will consider purchasing shares if the company can reverse its revenue and profit declines.

The article Is Microsoft a Buy? originally appeared on Fool.com and is written by Robert Ciura.

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