Microsoft Stock History: Microsoft – To Buy or Not to Buy?

Page 1 of 2

Microsoft Corporation (NASDAQ:MSFT)Microsoft Stock History: On one side of things, Microsoft Corporation (NASDAQ:MSFT) is a stock that many people want to own because of its stability. On the other side of things, investors often times ask themselves why they are buying shares of the company.

Although it has yet to happen, people are on the edge of their seat wondering when Microsoft Corporation will release the “next big thing” which allows it to break out from the shadows and prove its prominence once again.

Jeff Reeves of MarketWatch recently took a closer look at this phenomenon in his piece entitled: Microsoft: Nothing to offer beyond the Dividend

He starts off by noting the following:

“To be clear, I’m not one of those post-PC bears who thinks Microsoft is doomed. I believe Microsoft will be around for many years to come.”

As you can see, he shares the same sentiment as many. It is not that Microsoft Corporation (NASDAQ:MSFT) is doomed for failure at some point in the near future. that being said, it is hard to imagine a situation in which the stock is going to take off and offer better returns.

For those who are unfamiliar with the way things usually work with Microsoft Corporation (NASDAQ:MSFT) stock, Reeves does a great job by offering the following rundown:

“Valuation: The valuation is more than fair, with a price-to-earnings ratio of 9.7 according to Standard & Poor’s fiscal 2013 forecasts of $2.88 in EPS. Use full-year 2014 forecasts of $3.11, and you get close to 9.0.”

“Cash: Microsoft has $66 billion in cash — enough to buy both Hewlett-Packard (HPQ) and Dell (DELL) combined. Even though almost $58 billion of that is overseas and could be subject to taxes if repatriated, that’s a huge chunk of change.”

“Windows Isn’t Dead: Windows and Office remain dominant and profitable. While tablets are ascendant, desktops and laptops will remain necessary to the workplace in some form for many years.”

“Sleepy But Profitable Products: While Bing or the Windows Phone or Surface lack the dominance of Windows, that doesn’t mean they are failures. Sure, they may never have a cult following, but that doesn’t mean they don’t make money.”

“Dividend: Microsoft has more than doubled its dividend in the last five years to 92 cents annually — a roughly 3.3% yield — and the payout ratio is a very sustainable 31% in fiscal 2013 that could signal further continued increases in years ahead.”

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!