I put Microsoft stock in my hot stocks for 2012 post on Investment Talk. However, it has been Apple that has really exploded in the last few months and analysts are still extremely bullish about the Cupertino, CA company.
But there is a reason to either buy or hold onto any Microsoft stock that you may have in your portfolio as the news is buzzing with reports that the release of the much anticipated Windows 8 would increase Microsoft’s share price even as much as $8.
I haven’t been entirely wrong in my prediction of Microsoft stock price going up as the share prices has actually risen by 30 percent since the beginning of 2012. What investors should be really optimistic about is the fact that the tech giant is going after growth opportunities that exist in mobile devices.
The other thing to keep in mind is the P/E of 11 is particularly low and so the stock is underpriced taking into consideration potential future earnings that could be very high. The stock has great fundamentals that even value investors would greatly appreciate and add to their portfolio. Furthermore, the stock has been termed the top dividend stock of the very tech heavy Nasdaq 100 according to Forbes.
The annual dividend yield of Microsoft stock is 2.5 percent and it is backed up by the history of a strong quarterly dividend that the company has offered its shareholders. Researching the dividend history is a great way to see if the dividends will continue to be paid to shareholders.