5 Cash-Rich Tech Stocks to Buy Now

3. Microsoft Corporation (NASDAQ:MSFT)

Free Cash Flow: $65.14 Billion

Number of Hedge Fund Holders: 258

At the end of Q2 2022, 258 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) with stakes worth $56 billion. As of June 30, Fisher Asset Management is the most prominent shareholder in the software giant with stakes worth $7.3 billion. The investment covers 5.21% of Ken Fisher’s 13F portfolio.

Microsoft Corporation (NASDAQ:MSFT) is a dividend-paying tech company that has been growing its dividends for 17 years. As of September 7, Microsoft Corporation (NASDAQ:MSFT) is offering a forward dividend yield of 0.98%, which the company backs with free cash flows of $65 billion.

On August 11, Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a $292 price target and a Neutral rating. DiFucci is bullish on the software giant’s ability to grow revenue and cash flows in the mid-teens percentage range, as the company’s industry-leading Azure and Office Commercial 365 experience strong demand.

Carillon Tower Advisers mentioned Microsoft Corporation (NASDAQ:MSFT) in its first-quarter 2022 investor letter. Here is what the firm had to say:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft Corporation (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”