Shares/Stock How to Invest in Microsoft Stocks in 5 Easy Steps

greenieS

Verified member
Known to the general public in the computer world, Microsoft's action is part of the major market capitalization of the Wall Street technology sector.

After several difficult years, especially between 2007 and 2013, Microsoft and its share price are rising again. Microsoft stock is now considered one of the best long-term stock investments for a variety of reasons.

Microsoft Actions - A Brief Introduction to Microsoft

Founded in 1975 by Bill Gates and Paul Allen, Microsoft's core business is the development of operating systems, software, and hardware. However, the Microsoft model has been constantly evolving, and today the company operates in other sectors, such as the cloud, the web, artificial intelligence and video games.

Microsoft's flagship products include:

✔️ Windows operating system,

✔️ Office Desktop Tool,

✔️ Xbox Video Game Console,

✔️ Bing Search Engine,

✔️ Web Explorer browser

✔️ One Cloud Service

➤ In addition, there are important purchases, such as the LinkedIn professional social network or Skype software.

Since 2014, the new CEO of Microsoft is Satya Nadella, the third to hold this position, after Bill Gates (1975 - 1999) and Steve Ballmer (2000 - 2013).

The new director brought a new lease of life to Microsoft through a new business model, more focused on services than systems.

Highlighting the transformation of Office into a subscription service and the definitive abandonment of the Microsoft Phone system, which has been competing with Android and iOS since December 2019.

Microsoft Stock on the Stock Exchange

On the stock exchange, Microsoft has seen a period of strong growth since 2014 (+ 260%), and its market capitalization for the first time exceeded 1 trillion on April 30, 2019, with a stock price of more than $ 130, joining Apple and Amazon, which have done the same before.

Microsoft stock market has long been considered a cyclical value by investors, that is, it progresses in periods of economic expansion, and falls sharply in times of recession, in general, as well as actions in the technology sector.

➤ However, the company has diversified a lot in recent years and is no longer a pure technology stock and now looks more like a revenue stream that is resistant to disruption and regularly distributes dividends, even in times of recession .

The transformation, which has been going on since 2014, makes Microsoft a low-cash, high-profit company that can afford to redistribute some of its profits to its investors, unlike other technology companies that usually reinvest. cash.

This is information to consider when deciding whether to invest in Microsoft.

Microsoft Stocks - Dividend and Yield

Traditionally, technology companies are not known for their level and quality of performance. The financial community classifies them as a strong growth action. Some of them do not pay any dividends because they prefer to allocate their capital to new projects that can generate greater growth potential.

However, Microsoft has been distributing dividends on a regular and quarterly basis since 2004, uninterruptedly, and growing steadily from year to year.

In the fourth quarter of 2020, investors received a dividend of $ 0.51 / share, which is not a high figure, although growth has been steady over the years.

Between 2004 and 2020, Microsoft's quarterly dividend rose from $ 0.08 to $ 0.51, up 537% in 15 years.

The interest in these actions also lies in the continued distribution of income to investors, regardless of the business cycle.

↳ In fact, unlike many shares in the capital market, Microsoft continued to distribute a dividend during the crises of 2008 and 2011, it was even higher than in previous amounts.

In terms of profitability (stock market dividend), Microsoft's share is sufficient to attract long-term investors looking for income and stability in their portfolios. The company offers a return of about 1%.

Microsoft's stock dividend certainly offers a downward slope that has been on a downward slope since December 2015, but this is largely due to the sharp rise in the price of its shares during this period.

Indeed, the Microsoft Stock Price (Microsoft stock price) - The Microsoft stock price is rising faster than the dividend, mechanically weighing the yield, but investors will certainly not complain about capital gains and income.

Evolution of Microsoft Shares on the Stock Market


Microsoft's stock has a clear price history since March 2009, when it fell to $ 14.85. At the beginning of 2020, just over a decade later, Microsoft's share price exceeded $ 165. The value of Microsoft's stock has increased elevenfold in less than a decade.

With a more recent and closer pricing history of over five years, for example, since 2014 and the appointment of new CEO Satya Nadella, Microsoft's stock market price has multiplied by 3.

This does not emphasize the performance of the next five years, but Microsoft stock clearly offers some long-term insurance to investors.
In terms of graphical analysis and forecasting, the stock price of Microsoft stock could be high for an investor who wants to buy this stock on the stock market for the first time, especially after the recent 70% rally in March 2020.

In fact, after the price reached $ 189 in February and then dropped rapidly to $ 132 in March, the price of Microsoft CFDs rose rapidly, and on January 28, 2021 it reached a high of $ 242.63 per year. action.

Indeed, after a slight fluctuation below the February highs in mid-June, Microsoft's stock price followed an upward trend, reaching a new all-time high of around $ 232 in September. After a few weeks of hesitation, the price has risen again since January 20, and on January 28 recorded a record high of $ 242.63 per share.

Is it the right time to buy Microsoft stock? It is important to do a more comprehensive analysis of the company.

Finally, keep in mind that the cost of Microsoft's stock is expressed in dollars, as it is listed in the United States, if you intend to own the stock directly and enjoy dividend distribution.

Please note that this is not an investment recommendation for Microsoft stock.

Next, we'll look at the results for the first quarter of 2020 to see how they can affect Microsoft's share price.

Microsoft Stock Exchange - 2020/2021 Results

Microsoft's results in the fourth quarter of 2020 - the second quarter of fiscal year 2021 - exceeded market participants' earnings by $ 2.03 per share, compared to an estimated $ 1.64. Its quarterly revenue was $ 43,076 million, up 17% from the same period last year.

Its net profit rose more than 30 percent to $ 15.5 billion. The company saw a 21% increase in revenue from cloud services, while the Global Computing Division grew by 10%.

The coronavirus pandemic and the expansion of work at home have boosted Microsoft's services in 2020.

Why Buy Microsoft Stocks

When you want to invest in the stock market and are interested in buying or selling long-term or swing trading, do not rely solely on the technical signals provided by the technical analysis or those provided by the fundamental analysis of a stock. An action is, above all, a company.

It is important that you are interested in this business before you buy Microsoft stock on the stock exchange.

For this, the best way is to notice the strengths and weaknesses before taking a trading position.

Microsoft Stock - Strengths

The company exploits various growth factors with high potential: Cloud, artificial intelligence

✅More diversified business model and leading position in computer software production

There is no rivalry between Microsoft and Apple because their business models are not the same

✅Healthy balance sheet: high profitability, reasonable level of debt, good cash flow management

✅Microsoft gets rid of regulatory risk that currently weighs on GAFA (user data, competition)

Microsoft Stock - Weaknesses
✅The technology sector is sensitive to disruption

GAGFAFA competition

✅Short-term sensitivity to rising interest rates is faster than average
 

Mika

VIP Contributor
Your title and the content do not match. You did not explain how to invest in Microsoft stocks, you just shared about Microsoft stocks and explained how profitable is Microsoft stock investment. Currently, Apple is number two in terms of market cap, however, before the evolution of iPhone, Microsoft was the world's biggest company in terms of market cap. The owner Bill Gates also become one of the first people to become an owner of over 100 billion dollars. For people like us, who are posting on forums, trying to earn money doing small tasks and freelancing jobs, microsoft is a way beyond.
 
D

Deleted member 28127

Guest
Microsoft stocks are profitable these days but most people are migrating to open source releases like almalinux or rocky linux then Microsoft customers except one how are opening an email account are decreasing day after day then it is variable from global uses of Microsoft products.
 

sincerem

VIP Contributor
Microsoft have achieve a super stardom status, it's been around now for over 40 years. And the end of Microsoft existence wouldn't happen tomorrow, it will simply be around for many more years because the business model is well planned and running in diverse niches. As for investing in Microsoft stocks is simply way off my budget. I don't think I can afford it's minimum investment plan talk more of making any tangible profit out of it. I see it as investment for the financial stable people. The investment Bill - gates and Paul Allen set up way back in 1975 have grown to be one of the biggest technology franchise company of our own generation, with lots of hardwares and software developed under their name. Such made co-founder Bill gates very rich together with Paul Allen, I am not hearing much about Paul allen, but Gate is a very popular personality when it comes to one of the richest business gurus in the world today. Microsoft tech company is simply his route towards his success, he planned it incredibly well, and it paid off after some time. Such creativity defines any individual in the future with enormous financial returns.
 
D

Deleted member 28127

Guest
Microsoft have achieve a super stardom status, it's been around now for over 40 years. And the end of Microsoft existence wouldn't happen tomorrow, it will simply be around for many more years because the business model is well planned and running in diverse niches. As for investing in Microsoft stocks is simply way off my budget. I don't think I can afford it's minimum investment plan talk more of making any tangible profit out of it. I see it as investment for the financial stable people. The investment Bill - gates and Paul Allen set up way back in 1975 have grown to be one of the biggest technology franchise company of our own generation, with lots of hardwares and software developed under their name. Such made co-founder Bill gates very rich together with Paul Allen, I am not hearing much about Paul allen, but Gate is a very popular personality when it comes to one of the richest business gurus in the world today. Microsoft tech company is simply his route towards his success, he planned it incredibly well, and it paid off after some time. Such creativity defines any individual in the future with enormous financial returns.
This is because they have a large database of users and also universities most of them are teaching sciences by Windows release, not Mac OS release or RedHat release this is a second good reason behind they will leave for a long period of time.
 

Token Academy

New member
Nice article about microsoft stocks, thanks ! 😀
 

sincerem

VIP Contributor
This is because they have a large database of users and also universities most of them are teaching sciences by Windows release, not Mac OS release or RedHat release this is a second good reason behind they will leave for a long period of time.
I got you right, they have large database of users worldwide, and employees. Those have helped them to achieve and live their dreams. Microsoft have been around for a very long time now, I came out and started hearing their name. I wish them continuity for a very long period of time. I've been a user of their play station series for a while now, and I'm not planning to leave the gaming console series anytime soon too, because I'm enjoying the qualities it posseses.
 
Top