Microsoft (MSFT) / Bill Gates

[profittaker]

are you impressed by the design? It is very functional, but feel cold.

The Story of Windows 8
http://vimeo.com/52173464

[iam802]

Finally... Ballmer is leaving.

I am betting that the replacement will be from the outside.

--
Ballmer Exit Leaves Microsoft Searching for Hero in Slump

http://www.bloomberg.com/news/2013-08-2 ... slump.html

[behappyalways]

Internet Explorer must die
http://money.cnn.com/2014/12/30/technol ... d=HP_River

[behappyalways]

Microsoft’s Business License Sales Hit by China, Japan Slump
http://www.bloomberg.com/news/2015-01-2 ... -xbox.html

[winston]

The Safety Net: Dividends Don't Get Better Than This One

by Marc Lichtenfeld


When I analyze the safety of a dividend, I look at several different things. The track record is critical. If a company raises the dividend every year, management has made it clear that the dividend is important. If it cuts the dividend, it's expressed that the dividend is not a priority.

I also look at cash flow. Does the company have the ability to pay the dividend based on cash flow? Earnings are nice. But net income has all kinds of noncash items included in its calculation. Cash flow represents how much cash the company takes in.

When cash flow is much higher than the dividend, you know that even if things get difficult, the company should have no problem paying its dividend.

With that, let's put these metrics to use.

As requested, this week we're looking at a tech giant that pays a respectable 3.1% yield.

It wasn't that long ago that Microsoft (Nasdaq: MSFT) was a high-flying tech stock. Today, the software company is stable, with high single-digit earnings growth.

The company has raised its dividend every year since 2010 by at least 10% per year. Before that, it boosted the dividend in 2006, 2007 and 2008. During the financial crisis, it left the dividend unchanged for two years.

Microsoft has plenty of cash, with $62 billion of net cash in the bank. (Net cash is cash minus debt.) The company has $28 billion in debt with $90 billion in cash. So its debt is not a concern at all.

Over the past four quarters, Microsoft generated $27 billion in free cash flow. During that period, it paid out $9.5 billion in dividends for a payout ratio of just 35%. In other words, it pays out $0.35 of every dollar of free cash flow. That is quite low.

I like companies to have payout ratios of 75% or lower. That way, if times get tough, there is a buffer and they won't have to cut their dividends. Think of it this way - if a company's cash flow is $1 billion and it pays out $1 billion in dividends, what happens next year if cash flow falls to $800 million?

The company would either have to pay the other $200 million in dividends from cash on hand, borrow the money, raise the money by selling stock or cut the dividend.

If the same company started off paying $750 million, the 20% drop in free cash flow wouldn't jeopardize the dividend.

So Microsoft's 35% payout ratio gives it plenty of wiggle room in a down economy.

In fact, with so much cash in the bank, I'd like to see Microsoft continue to raise the dividend, but by a more substantial amount. It could easily pay out half its free cash flow in dividends and not have to worry about it.

This fiscal year, which ends in June, Wall Street forecasts Microsoft's free cash flow to be $23.5 billion, rising to $25.4 billion next fiscal year.

Even if the company increases the dividends paid by 15% for each of the next two years, in fiscal 2016, it would pay out $11.7 billion, which is still well below 50% of expected free cash flow.

Microsoft likely has at least several years of double-digit dividend growth ahead of it if management continues to reward shareholders.

I wish every dividend company that I analyzed looked like Microsoft. It has huge sacks of cash sitting in the bank, double-digit annual dividend increases and more than enough free cash flow to fuel the dividend truck for years to come.

Microsoft's dividend is about as secure as it gets.


Source: The Oxford Club

[winston]

not vested

Tech Stocks: Microsoft (MSFT)

A little more than a year ago, when Satya Nadella took the helm as CEO of Microsoft Corporation, some were convinced it was the beginning of the end for one of the market’s most prolific tech stocks.

Nadella has since proved all the doubters wrong, putting the finishing touches on his results-based rebuttal with the company’s fiscal third quarter numbers posted Thursday afternoon.

In Q3, Microsoft grew the top line by more than 6% (largely thanks to cloud services and hardware sales), topping revenue estimates in the process. And, earnings trounced outlooks. The company earned 61 cents per share, versus expectations of only 51 cents per share of MSFT.

It’s true that Microsoft Windows is increasingly irrelevant as consumers move from computers to tablets. Ditto for Microsoft Office.

It’s also true, however, that Nadella has been reshaping the company into something that is increasingly relevant now. Namely, MSFT is making a name for itself in cloud computing, and it did surprisingly well with its newly-acquired Nokia smartphone business last quarter. The company sold $1.4 billion worth of phone hardware in its fiscal Q3 (6.5% of total revenue), while cloud-driven service revenue grew more than 100% in the previous quarter.

In other words, contrary to widespread belief and despite a lackluster performance from MSFT this year so far, Microsoft has reinvented itself. Last quarter’s numbers are finally forcing the market to recognize it.

Source: InvestorPlace

[winston]

not vested

Blue Chips Crushing Earnings: Microsoft Corporation (MSFT)

In one of the more pleasant positive earnings surprises, Microsoft Corporation (NASDAQ:MSFT) shift toward being more of an enterprise company appears to be working quite well.

Heck, MSFT beat estimates by 10 cents a share.

The stronger dollar weighed on results, as did the slowly melting iceberg of sales of PCs. Fortunately for MSFT, the cloud helped save the day. Indeed, revenue from the cloud segment more than doubled year-over-year, driven by increases in Office 365 subscriptions and Azure.

The strength in cloud services allowed MSFT to exceed top-line estimates as well — no small feat in this revenue-constrained quarter.

No, the strong quarter doesn’t mean the bad news is over for MSFT. It’s in the midst of a transition that will take years to complete. But the better-than-expected results do offer proof that this strategic change of course is working.

Source: InvestorPlace

[winston]

not vested

Microsoft (MSFT) Stock Is Not a Sell – Goldman and Citi Are Wrong

By DAVID ZEILER

Source: Money Morning

http://moneymorning.com/2015/05/06/micr ... are-wrong/

[winston]

Here's Why Microsoft (Nasdaq: MSFT) Stock Recently Soared

By MICHAEL A. ROBINSON

Source: Money Morning

http://moneymorning.com/2015/05/07/here ... ly-soared/

[winston]

not vested

Breakthrough Tech Stocks to Buy Now: Microsoft Corporation (MSFT)

Microsoft Corporation (NASDAQ:MSFT) shares have long been the neglected stepchild of the tech stocks kingdom — one in which Apple Inc. (NASDAQ:AAPL) would play the evil stepmother.

Regardless of how the company positions itself — and even regardless of its standout 2013-14 performance — MSFT continues to get called out by the media and pundits as a has-been of the technology world.

Frankly, we love the lower expectations as it makes it easier for MSFT to impress the market. With a new Windows release hitting the market later this year, we expect to see Microsoft flex its product muscle and give traders reason to follow through on the recent relative strength.

Look for shares to consolidate across the $48 mark before charging forward to match their all-time highs of $60 later this year.

The rally will be fueled by the majority of analysts that have the stock ranked a “hold” or lower start to get nervous about being on the wrong side of this tech leader, causing them to upgrade their outlooks.

Source: Investor Place