Microsoft (Ticker: MSFT) declared a $0.56 per share quarterly dividend in the form of cash.
Cash will be paid on June 10, 2021, for shareholders of:
- Record Date: May 20, 2021
- Ex-Dividend Date: May 19, 2021
Is Microsoft Stock Good for Long Term Investment?
Microsoft is one of the largest software companies in the world. We like this tech titan and its regular way of paying dividends. An investor could consider the following factors before buying Microsoft stock and investing it for long term:
Legacy
Microsoft is a giant tech company founded in 1975 by Bill Gates and Paul Allen. The company has been in the industry for more than 40 years. We believe it will stay one of the most important technology companies in the world.
Forbes ranked Microsoft as the #1 company in 2021, leading the new era of responsible capitalism (Forbes Just 100 Companies). Microsoft is also ranked #21 from the Fortune 500 Companies and #3 from the World’s Most Admired Companies in 2021.
Invention
It is the creator of MS-DOS and Windows. More than 1 billion devices are running Windows 10 right now. 90% of the Fortune 500 companies use Microsoft Cloud.
Microsoft continues to innovate and expand its business. Today, it has three main engineering groups:
- Cloud and Artificial Intelligence
- Experiences and Devices
- Technology and Research
Social Responsibility
Microsoft cares. Last year, it donated over $1.4 billion in software and services, helping non-profit organizations worldwide access essential technology and skills. They commit to their sustainability programs to protect our planet in the areas of biodiversity, climate change, and water.
Performance
Microsoft’s earnings have grown significantly by 27.3% per year over the past five years. It reported a revenue of $143 billion in 2020 and a net income of $44 billion.
Currently, Microsoft stock has a 5-Year Price Return of 377%, outperforming the S&P 500 100% price performance. If you invested in Microsoft stock one years ago, you would have made around 37%. Past performance is not an indication of future results.
Index Inclusion
Microsoft stock (MSFT) is included among the top stocks of the Dow Jones Industrial Average index, S&P 500, and Nasdaq 100. Index inclusion helps to increase market capitalization and also encourages other investors to add MSFT to their portfolio.
Target Price
The average target price for Microsoft stock is $282.57 based on 23 analysts offering 12-month price targets. Buying around 230 would give an investor a profit of 22.86% if he follows that target price.
Growing Dividend
Not all popular tech stocks pay dividends. Fortunately, Microsoft is an exemption because it pays its shareholders dividend quarterly. Microsoft’s dividend per share has been stable in the past ten years. Similarly, dividend payments have increased over the past ten years.
Microsoft Dividend History in the Last 5 Years
| Ex-Div. Date | Dividend | Amount | Payment Date |
|---|---|---|---|
| 05/19/2021 | Cash | $0.56 | 06/10/2021 |
| 02/17/2021 | Cash | $0.56 | 03/11/2021 |
| 11/18/2020 | Cash | $0.56 | 12/10/2020 |
| 08/19/2020 | Cash | $0.51 | 09/10/2020 |
| 05/20/2020 | Cash | $0.51 | 06/11/2020 |
| 02/19/2020 | Cash | $0.51 | 03/12/2020 |
| 11/20/2019 | Cash | $0.51 | 12/12/2019 |
| 08/14/2019 | Cash | $0.46 | 09/12/2019 |
| 05/15/2019 | Cash | $0.46 | 06/13/2019 |
| 02/20/2019 | Cash | $0.46 | 03/14/2019 |
| 11/14/2018 | Cash | $0.46 | 12/13/2018 |
| 08/15/2018 | Cash | $0.42 | 09/13/2018 |
| 05/16/2018 | Cash | $0.42 | 06/14/2018 |
| 02/14/2018 | Cash | $0.42 | 03/08/2018 |
| 11/15/2017 | Cash | $0.42 | 12/14/2017 |
| 08/15/2017 | Cash | $0.39 | 09/14/2017 |
| 05/16/2017 | Cash | $0.39 | 06/08/2017 |
| 02/14/2017 | Cash | $0.39 | 03/09/2017 |
Risks of Investing Microsoft Stock:
All investments carry risks, especially technology stock like Microsoft. Tech stocks can be very volatile in nature. Although Microsoft is a powerhouse tech giant, the emergence of other tech companies that operate businesses like Microsoft (cloud, software, AI, gaming) could create competition.
In addition, global market status, economic factors, earnings expectations, news, and a pandemic are also factors affecting the movement of prices in the stock market. So always be cautious and risk only the capital you’re comfortable losing.
Other Stock Market Guides:
- Everything You Need to Know Before Investing in ETF
- Best US Tech Stocks to Invest in 2021
- 18 Golden Rules to Grow Money in the Stock Market
Disclaimer: This article is for information purposes only and should not be considered as a professional advice or endorsement of a particular investment. Every investor must evaluate his risk profile, financial status, and objectives before making an investment. All investments have risks. Risk only the capital you’re not afraid to lose. Always do your own research before investing.
Disclosure: The author is a long term investor of Microsoft.
