Have You Ever Considered a Dividend Play on Microsoft?
- By Sangara Narayanan
In the last 12 months, Microsoft's stock price has run up nearly 24%, and it is now trading above its recent 52-week highs. In fact, Microsoft is now regularly making new 52-week highs thanks to the steady increase in cloud-based revenues. But there is one more factor that is going unnoticed due to Microsoft's surging stock price: its current dividend yield of around 2.4%. Despite the run up, the yield is still good, and there are several reasons an investor should consider adding Microsoft to his portfolio.
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$122.78 billion in cash and short-term investments. The balance sheet is strong enough to give Microsoft plenty of room to keep increasing dividends in the near to medium term. The pile of cash also allows Microsoft to steadily keep repurchasing shares. In the last two quarters it spent $7.9 billion on share buybacks.