Topic: How To Invest

Dividend Advisor Hotline – Friday, September 23, 2022

Article Excerpt

MICROSOFT CORP., $237.92, Nasdaq symbol MSFT, remains a buy. Through their shares, investors directly tap the world’s largest software company. Its Windows operating system powers 85% of the world’s personal computers. Microsoft plans to raise your quarterly dividend by 9.7% with the December 2022 payment, to $0.68 a share from $0.62. The new annual rate of $2.72 yields 1.1%. The company will likely earn $10.19 a share in the fiscal year ending June 30, 2023, and the stock trades at 23.3 times that estimate. While that’s a high p/e, it’s still acceptable considering the company’s high market share and research spending (about 12% of its revenue). As well, its revenue continues to rise at an impressive 20% annually. Microsoft began paying regular dividends in 2004 and has raised that rate each year since 2010. Including this latest increase, the dividend has grown an average of 10.1% annually over the last five years. Its TSI Dividend Sustainability Rating is Highest. Microsoft recent coverage: September 2022 issue …