Analysts at Standpoint Research upgraded tech giant Microsoft
) on Wednesday after a 3 month period of decline as shares now look
The analysts upgraded MSFT from "Hold" to "Buy" with a price
target of $32. The new target is a +17% upside from Tuesday's
closing price of $27.32.
Standpoint Research analyst Ronnie Moas notes, "We have gone
in-and-out of MSFT twice in the last four years…Since we last
exited MSFT in September 2011 the shares have underperformed the
Nasdaq and the S&P-500 by 1500 basis points. The stock has
dropped 15% in the last three months and once again looks
attractive (especially relative to the S&P).
"MSFT seems to be on track to compete with its current strategy,
well-received new products [Xbox, Windows 8, Surface and Office]and
Microsoft shares were up slightly (+0.77%) in premarket trading
on Wednesday. The stock is up +5.24% year-to-date.
Microsoft is one of the world's largest software researchers and
manufacturers. The company is well known for its Windows operating
system products, as well as the Xbox gaming system, Microsoft
Office software, and its recent entry into the tablet and
smartphone markets. In the most recent quarter, MSFT reported net
income of $4.47 billion on revenues of $16 billion.
Microsoft Dividend in Focus
Microsoft has paid out a
dividend of $0.83 cents per share over the past 12
. The company raised its quarterly dividend by 3 cents for most
recent distribution, increasing quarterly payout from 20 cents per
share to 23 cents per share. This new quarterly payout has
increased the company's annualized dividend to 92 cents per share,
which represents a dividend yield of 3.37% based on Tuesday's
closing price of $27.32. Microsoft's next dividend of 23 cents per
share has a pay date of March 14, 2013; the stock will trade
ex-dividend early next year on February 19 (view the
for information on all upcoming ex-dividend dates).
Recent and future Microsoft dividends include:
June 14, 2012:
September 13, 2012:
December 13, 2012:
March 14, 2013:
In addition to slowly increasing its dividend payout over the
past couple of years, Microsoft's payout ratio has also gradually
increase over the past three fiscal years:
Microsoft vs. The Competiton
Dividend.com has identified several stocks that are in the same
sector as Microsoft, including Apple Inc. (
), Oracle Corp. (
), IBM (
), and Hewlett-Packard (
). Currently Microsoft has one of the highest yields among its
competition; only Hewlett-Packard current holds a dividend yield
above Microsoft's 3.37%.
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Microsoft Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
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, as well as a detailed explanation of
our ratings system here