Despite the fact that Microsoft has already risen by 29% this year, I continue to invest monthly in this company. Sometimes it can also be difficult to motivate the purchases but there are some things that make me like this company and think it is a good buy in the long run.
If I going to point something that many people like, it is dividend and if you look at Microsoft’s dividend history from, for example, 2005 onwards, it looks very nice. With a dividend growth of just under 10% over the past five years, it is a good complement to a dividend portfolio. Of course a dividend yield of about 0.77% is not very high, but it should not be too high in my opinion either.
Something that will continue to strengthen Microsoft revenue is that they switched to a more subscription-based model when it comes to their office suite. And the fact that their cloud-based service Azure is catching up with Amazon’s corresponding service in market shares is also something to take into account.
For those who play on a computer, Microsoft’s Windows is the operating system that the majority use. But this is not where they make the most money on gaming. We get to look at the Xbox instead and I look at the xbox games pass. And according to their latest annual report for 2020, they have over 15 million subscribers, which I am convinced will grow and will continue to create an increasing flow of income.
This was a very breif analysis of why I think the Microsoft stock is a buy right now. It should be added that this is my personal opinion and historical returns are not a guarantee for the future.