Microsoft

No one should need an explanation of who or what Microsoft Corporation is, but for the one or two people who have been living on an island in the south pacific somewhere, here goes.

Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Its best known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Edge web browsers.

​Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface tablet lineup. As of 2016, it is the world's largest software maker by revenue, and one of the world's most valuable companies.
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​Microsoft Corporation, a technology company, develops, licenses, and supports software products, services, and devices worldwide. The company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, and Skype, as well as related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform with computing, networking, storage, database, and management services; and enterprise services, such as Premier Support and Microsoft Consulting that assist in developing, deploying, and managing Microsoft server and desktop solutions, as well as provide training and certification to developers and IT professionals on Microsoft products. The company's More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system, as well as patent licensing, Windows Embedded, MSN display advertising, and Windows Phone licensing system; devices, including Microsoft Surface, phones, and PC accessories; and search advertising, including Bing and Bing Ads. This segment also provides gaming platforms, including Xbox hardware, Xbox Live, video games, and third-party video games. The company markets and distributes its products through original equipment manufacturers (OEM), distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.
(Summary) (Company) (Chart)

21 May 2017
Price $67.69
1yr Target $74.13
Analysts 32
Dividend $1.56
Payout Ratio 68.72%

1yr Cap Gain 9.51%
Yield 2.30%
1yr Tot Return 11.81%

P/E 29.85
PEG 3.19
Beta 1.00

EPS (ttm) $2.27
EPS next yr $3.32
Forward P/E 20.39
EPS next 5yr 9.35%
1yr Price Support $31.04

Market Cap $522.76 Bil
Revenues $87.25 Bil
Earnings $17.81 Mil
Profit Margin 20.41%

Quick Ratio 2.80
Current Ratio 2.80
Debt/Equity 1.20

1yr RevGR -8.83%
3yr RevGR 3.07%
5yr RevGR 4.05%

1yr EarnGR 41.89%
3yr EarnGR -6.57%
5yr EarnGR -4.84%

1yr DivGR 16.12%
3yr DivGR 15.93%
5yr DivGR 17.60%

ROA 8.30%
ROE 25.40%

Microsoft Monthly Chart

Microsoft Dividend History

My Strategy Going Forward

While Microsoft isn't a Dividend Aristocrat, it's been delivering an increasing dividend for about 12 years now and that's a pretty significant achievement. It's also one of the pillars of the computer industry and belongs in most Dividend Growth Investors portfolios. 

Microsoft Corporation's stock isn't cheap, but it usually isn't. I've owned shares of this company for a very long time and I add to that position whenever the stock is on sale or when their outlook brightens. Recently things have brightened, in a weird sort of way. Leaked computer viruses by the Federal Government's Intelligence Agencies are causing more and more companies and individuals to upgrade their operating systems and application software. That's got to be a boom to software sales.

The Company is expanding in other areas too. The Surface Pro continues to sell well and the Company has taken the largest share of the game console market. The future continues to look bright for Microsoft and the dividend is growing at a very fast pace. 

I plan to continue to grow my position in these shares because I just don't see an end to this story. It just keeps getting better.