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01-27-2014, 11:26 PM
(This post was last modified: 01-27-2014, 11:27 PM by Dexter.)
I am not a dividend growth investor nor an expert on fundamental analysis, but http://finviz.com/quote.ashx?t=msft
I mean just look at all those green numbers, and green = good!
Their current P/E is low and if you consider their forward P/E it is even better. Their payout ratio is also extremely low. I believe they have increased their dividend for past 8 years(since 2005).
When I think about MSFT, I think about a company with a solid business that will be around for years to come. They also buy back shares and have a nice dividend yield.
What do you guys think? Can you think of any negatives?
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Welcome Dexter!
MSFT has a lot a fans in the dividend growth community, and it absolutely has a lot going for it. If you were looking for something to worry about, you might say that its earnings growth is not spectacular any more. Also, many of us are wary about putting too much of our portfolios into tech, which has less predictability than other sectors if you're looking more than just a few years out. But MSFT certainly is a great business, and may even be a good value.
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Kerim, last night I posted a reply to this thread and now it seems to be missing. Did I post to the duplicate (now deleted) thread by accident or did I fall asleep in the chair as I was composing and didn't even post it? Curious.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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[quote='Kerim' pid='2010' dateline='1390888760']
Welcome Dexter!
MSFT has a lot a fans in the dividend growth community, and it absolutely has a lot going for it. If you were looking for something to worry about, you might say that its earnings growth is not spectacular any more. Also, many of us are wary about putting too much of our portfolios into tech, which has less predictability than other sectors if you're looking more than just a few years out. But MSFT certainly is a great business, and may even be a good value.
I can understand the mild aversion to tech, it's difficult to predict what will be popular and useful 20 years from now. Makes sense, thanks for the reply 
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01-28-2014, 09:33 AM
(This post was last modified: 01-28-2014, 09:33 AM by fiveoh.)
The big uncertainty with MSFT right now is the CEO. Hopefully they can find one that helps them innovate and directs the company in the right direction. If the market likes their CEO pick, and earnings come in good this year, I think it will hit $40 before the end of the year.
Long MSFT.
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01-28-2014, 01:45 PM
(This post was last modified: 01-28-2014, 01:48 PM by Dividend Watcher.)
OK, I'll re-type what I wrote last night with embellishment ...
(01-27-2014, 11:26 PM)Dexter Wrote: Can you think of any negatives?
Ballmer, Bing, the Board of Directors, Windows 8, Zune & Slate for a few.
MSFT was never an innovator. They watched what others did, then came up with their own solutions. That's why they were late with the Internet and IE, the Aero theme and Hyper-V to name a few recent ones.
That being said, they are a cash cow and piss away a lot of that extra money with experiments. Are they a has-been? Not in my book.
I've tried to steer some of my small business customers away from Office to one of the alternatives and they won't hear of it.
Office (the desktop version) still fills their pockets. Azure actually holds a lot of promise that they don't get credit for. Office 365 is an up and coming constant revenue stream that won't depend on big business upgrade cycles. Expect to see this same concept in operating systems in the not too distant future. Xbox still has a lot of fans. And, if you really want to get philosophical, where they are going with Windows 8 is actually an ingenious roadmap -- phone, tablet and PC will look essentially the same and, with Skydrive, is essentially the same device in different form factors.
Don't expect the stock to be a Netflix or Twitter with phenomenal growth in price but I think the future looks very rewarding -- especially if they get a visionary CEO.
I'm long but would still feel this way if I didn't own it. Now if the dividend growth slows, I might not be so amenable.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Ran across this Forbes article today also.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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(01-28-2014, 06:12 PM)Dividend Watcher Wrote: Ran across this Forbes article today also.
Interesting info Dividend Watcher, thanks!!
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(01-28-2014, 09:15 AM)Dividend Watcher Wrote: Kerim, last night I posted a reply to this thread and now it seems to be missing. Did I post to the duplicate (now deleted) thread by accident or did I fall asleep in the chair as I was composing and didn't even post it? Curious.
Sorry I didn't see this before. I only deleted a duplicate post, so I don't think that was it. Not to cast aspersions, but I suspect user error.  It has happened to me a bunch of times -- I've typed out a post, then hit "preview" (either thinking I'm hitting "post" or because I actually want to proof the post), and then lose track and click away without actually hitting "post." The software should include a warning about that, alas...
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(01-30-2014, 10:31 AM)Kerim Wrote: (01-28-2014, 09:15 AM)Dividend Watcher Wrote: Kerim, last night I posted a reply to this thread and now it seems to be missing. Did I post to the duplicate (now deleted) thread by accident or did I fall asleep in the chair as I was composing and didn't even post it? Curious.
Sorry I didn't see this before. I only deleted a duplicate post, so I don't think that was it. Not to cast aspersions, but I suspect user error. It has happened to me a bunch of times -- I've typed out a post, then hit "preview" (either thinking I'm hitting "post" or because I actually want to proof the post), and then lose track and click away without actually hitting "post." The software should include a warning about that, alas...
Yup it was user error. Actually I tried to post a poll, changed my mind, then yea, something happened, user error
Thanks for deleting it!
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(01-30-2014, 10:31 AM)Kerim Wrote: (01-28-2014, 09:15 AM)Dividend Watcher Wrote: or did I fall asleep in the chair as I was composing
Not to cast aspersions, but I suspect user error.
OK, I'm not admitting this publicly but perhaps, just maybe, I sorta blew my cover in my first post above.  Eeeek!
Oh wait, no, it was this newfangled Windows 8 laptop I just got. 
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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