Microsoft Declared Dividend – Is Microsoft Stock Good for Long Term?

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
how to invest Microsoft stock

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. DateDividendAmountPayment Date
05/19/2021Cash$0.5606/10/2021
02/17/2021Cash$0.5603/11/2021
11/18/2020Cash$0.5612/10/2020
08/19/2020Cash$0.5109/10/2020
05/20/2020Cash$0.5106/11/2020
02/19/2020 Cash$0.5103/12/2020
11/20/2019 Cash$0.5112/12/2019
08/14/2019 Cash$0.4609/12/2019
05/15/2019Cash$0.4606/13/2019
02/20/2019Cash$0.4603/14/2019
11/14/2018Cash$0.4612/13/2018
08/15/2018Cash$0.4209/13/2018
05/16/2018Cash$0.4206/14/2018
02/14/2018Cash$0.4203/08/2018
11/15/2017Cash$0.4212/14/2017
08/15/2017Cash$0.3909/14/2017
05/16/2017Cash$0.3906/08/2017
02/14/2017Cash$0.3903/09/2017

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:

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.

About Fehl Dungo

Founder of DailyPik, entrepreneur, and tech investor. I have a Degree in Accountancy and a background in Finance. I analyze stocks everyday. START Investing HERE Connect with me on Facebook

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