Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Will Microsoft Corporation (MSFT) Help You Retire Rich?

Microsoft Corporation (NASDAQ:MSFT) has thrived over the years as a result of its cash-cow operating system and office software, each of which brings in more than a quarter of the company’s overall revenue and together account for all of its profits. Yet with the decline of the PC in favor of mobile devices, investors worry that Microsoft’s days of dominance may be numbered if it can’t adapt to changing technology trends, as Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) have captured huge portions of the mobile OS market as a result of their iOS and Android offerings, which now lead the smartphone market.

As a result, investors have looked closely at the recent release of the more mobile-friendly Windows 8 operating system and the Surface tablet. The original Surface got off to a slow start, but with the Surface Pro version having become available over the weekend to strong demand, Microsoft finally offers a full-blown tablet capable of running PC-style applications. The tablet may also boost Intel Corporation (NASDAQ:INTC)‘s mobile fortunes, as the Pro uses an Intel i5 processor, although short battery life concerns for the Surface Pro may raise questions about Intel’s capacity to provide power-friendly mobile processors.

As for Windows 8, it hasn’t been nearly the success that Microsoft had hoped. The operating system failed to bail out ailing PC manufacturers, and even though Microsoft said in mid-January that it had sold 60 million Windows 8 licenses, many of those were discounted upgrades that won’t necessarily produce huge amounts of revenue.

For retirees and other conservative investors, none of this arguably matters. So far, the Windows and business software divisions have managed to grow both sales and profits despite adverse trends away from PCs, producing huge amounts of cash that have led to higher dividends. With shares trading at a very reasonable valuation, Microsoft doesn’t need to be a big grower to give investors good value at current prices.

The article Will Microsoft Help You Retire Rich? originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Apple. The Motley Fool recommends Apple, Google, and Intel and owns shares of Apple, Google, Intel, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.