Microsoft stock is one of the most traded technology stocks on the market and the analyst consensus remains bullish on the stock.
How much can you make with Microsoft stock?
Get up-to-date and precise information on Microsoft stock with its current price, dividend yield, analysis and our opinion.
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Want to buy shares in Microsoft: Our key take-aways
Stock exchange: Nasdaq
- Stock index: Nasdaq 100
- Dividend 2021: $2.30
- Dividend forecast 2022: $3.20
- Performance over 1 year: +45.44%.
Should I buy Microsoft stock?
Based on the current analysis of Microsoft's share price, this is still a very interesting growth stock in the technology sector. It is a speculative and growth stock that you can buy in order to realize a capital gain in the medium or long-term.
The analyst consensus remains bullish on this stock for the next few years and its growth represents a real opportunity for investors.
Although its current yield is relatively low, the stock price of this share is constantly rising and this trend should continue over the long-term with very interesting annual performances.
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How can I buy shares in Microsoft ?
To buy Microsoft on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Microsoft to your stock portfolio.
How much are Microsoft shares?
See price chart below to follow Microsoft stock price in real time.
Ready to invest in Microsoft? Shop for through Qtrade.
Why Microsoft shares could go up:
Currently and according to the various financial and economic data available, several arguments seem to be in favour of a long upward trend in the Microsoft share price. The following points are worth noting:
- Financial results on the rise: the first argument in favour of a rise in the price of this share concerns the group's financial results, which, in addition to being impressive, are progressing in a positive manner, especially after the Covid pandemic.
- One of the largest capitalizations in the world: once again this year, the Microsoft group is positioned among the largest capitalizations in the world and more precisely, in third place with a capitalization of 1,900 billion dollars.
- Earnings per share above expectations: Microsoft's earnings per share are also above analysts' estimates and often exceed those expectations.
- A large cash position: thanks to its very satisfactory results, the Microsoft group has a comfortable cash position that allows it to make various investments, particularly in research and development, and thus remain innovative in the face of competition.
- A leading position in several segments: The Microsoft group also benefits from an advantageous position among the leaders in several segments, including operating systems and software, and has done so for over 40 years.
- Strong customer loyalty: Microsoft's marketing strategy allows it to easily renew its clientele and retain its existing customers.
Why Microsoft shares could go down:
Of course, even if Microsoft stock has a good chance of continuing its upward trend in the years to come, there are a few weak points to consider, including:
- A strategy that creates controversy: Microsoft's commercial strategy has often been the subject of controversy because it is considered too aggressive. The group has been accused several times of abuse of dominant position and has even been condemned several times.
- Increasing competition: the group also sees its market share threatened by increasing competition, whether in the operating system or web segments, but also because of the introduction of free software.
- An expensive share: finally and if this Microsoft share remains one of the most wanted by investors today, it is also very expensive and will not be able to be bought by everyone.
Can I buy Microsoft stock online?
Yes! You can buy Microsoft shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Microsoft shares?
Microsoft shares can only be sold for cash on the stock market by the shareholders who own them. However, it is possible to sell these shares short with certain products such as: - Margin account - CFDs - Options
What investment vehicles in Canada can hold Microsoft stock?
Microsoft shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Holding Microsoft shares in your portfolio on the stock market by buying them individually and in cash is of course the most common method used by individual investors.
But it is also possible to invest in this stock in a basket of other stocks with stock ETFs and ETFs that include this stock.
Microsoft share price history over 10 years:
Microsoft dividends and payment dates
The last known dividend paid by Microsoft to its shareholders was for the fourth and final quarter of 2021. Its amount was 0.62 dollars, which represents a yield of 0.78%. It was paid on December 09, 2021.
The total annual dividend paid in 2021 to shareholders was thus 2.30 dollars per share.
The next dividend announced by the group will be paid in the first quarter of 2022, in February, and will be in the amount of $0.62 per share as well.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.56 per stock||$0.56 per stock||$0.56 per stock||$0.62 per stock|
|Dividend: payout 2022||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.62 per action||Pending||Pending||Pending|
What is the dividend yield for Microsoft over the last 10 years?
|Year||Dividend amount||Variance||Performance||dividend distribution rate|
The yield on Microsoft shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Microsoft stock:
A critical analysis of Microsoft stock:
The fundamental analysis of Microsoft's share price over the medium and long-term is extremely optimistic:
- High valuation multiples: as a growth technology stock par excellence, Microsoft offers high valuation multiples that are currently at historical highs.
- High R&D investments: Microsoft Group also intends to improve its future growth thanks to strong investments in research and development with a 12% increase in the budget dedicated to this component in 2021.
- A higher average price target: the current consensus average price target for Microsoft shares is $375.02, which represents a potential increase of 17.8%.
- An optimistic consensus: the current consensus of analysts regarding this stock returns a majority of buy recommendations and no sell recommendations.
- Results expected to rise: the targets set by the group for the 2022 and subsequent fiscal years have been revised upwards several times recently, as have analysts' expectations.
A technical analysis of Microsoft stock:
The long-term technical analysis of Microsoft stock is also positive with strong buy signals. The main indicators are:
- The RSI which is sending a strong buy signal and is currently at 75.75.
- Apart from the MA5 moving average, all the simple and exponetial moving averages MA10, MA20, MA50, MA100 and MA200 are sending strong buy signals.
- The MACD is currently at 43.92 and is therefore also sending a buy signal.
- The upcoming resistances are currently at 347.99 and 359.67. Technical supports are at 320.94 and 305.57.
Who is Microsoft?
Microsoft Corporation is the world leader in the design, development and sale of operating systems and software for computers and servers.
- The sale of operating systems and application development tools for servers with Azure, SQL Server, Windows Server, Visual Studio, System Center and GitHub and for computers with Windows, among others, represents 44.5% of Microsoft's revenue.
- The development of software applications based on the cloud with Microsoft 365 productivity software, Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access, software for integrated management and customer relationship management, sharing and management of online files OneDrive and software for unified communication and collaboration Skype and Microsoft Teams generates 24.7% of turnover.
- Sales of video game consoles and software, including Xbox, generate 8.1% of revenue.
- Business services generate 4.5% of revenue.
- Finally, the sale of computers, tablets and accessories generates 4.5% of turnover.
Currently, the Microsoft group generates 51.5% of its revenue in the United States.
Who are Microsoft’s competitors?
Microsoft Corporation is currently the world leader in various segments of its business. However, it has to face some competitors, the main ones being:
- Apple: it is an American multinational company specialized in the creation and sale of electronic products for the general public, including smartphones, personal computers and software but also software for professionals. Apple has 137,000 employees and is present in more than 25 countries.
- Google LLC: This American company is also specialized in technological services and is a subsidiary of Alphabet. After its success with its search engine of the same name, Google has made many strategic acquisitions, particularly in software and web applications.
- SAP SE: This German company specializes in the design and sale of software, including management and maintenance systems for companies and institutions. It is the leading software publisher in Europe and number four worldwide.
- IBM is an American multinational specializing in computer hardware, software and services. The group has long been among the largest market capitalizations in the world.
- Oracle: Finally, the Oracle Corporation group is an American company that has created, among other things, the Oracle Database database management system, the Oracle Weblogic Server application server, an enterprise resource planning system and a cloud computing offering. In terms of market capitalization and revenue, Oracle is currently the second largest company in this sector.
Who are Microsoft’s partners?
The partnerships set up by the Microsoft group over time are very numerous. Some of its current strategic allies include:
- Accenture: Microsoft has created a joint venture with Accenture, called Avanade, which helps companies effectively meet the expectations of their customers and employees seeking to meet the challenges of the digital society.
- Adobe: Microsoft has also partnered with Adobe and SAP to establish the Open Data Initiative. This is an initiative that aims to improve the potential of customer experience management. In particular, a behavioral data stream provides a comprehensive view of customers to better understand their needs.
- Workday: Microsoft's alliance with Workday, an HR and financial management vendor, aims to integrate Microsoft's analytics tools and other capabilities into Workday. The two vendors have announced full information sharing as part of the alliance.
- Honor: Another strategic partnership has been signed with the company Honor in the field of artificial intelligence. Honor will use Microsoft's cloud computing for the development of its products.
- SEGA: Finally, Microsoft has also become a partner of SEGA, which continues to restructure and announces that this alliance will enable it to produce large-scale video games in a development environment for the next generation.