Everything you need to know before investing in Microsoft Stock?
Microsoft is one of the most valued companies on Wall Street, having surpassed the $1 billion mark in early 2019, a feat only achieved by Apple and Amazon. After a troubled few years, particularly between 2007 and 2013, Microsoft stock has shined in the stock market, becoming one of the best long-term investments for several reasons. If you are interested in investing in Microsoft, read this article.
Evolution of Microsoft stock on the stock market
Microsoft's shares have been in a period of strong growth since 2014, reaching a steady growth of 430%, after exceeding the value of $200 per share. Its capitalization, as mentioned above, on April 30, 2019, exceeded $1 billion, which has been achieved so far only by "Apple" and "Amazon". Continue reading the article to learn more about buy microsoft stock. For a long time, Microsoft was classified by investors as a cyclical financial asset, meaning an asset that grows during economic expansions, but falls drastically during recessions, as is the case with publicly traded companies associated with the technology sector. However, in recent years, the company has greatly diversified its service and product offerings, no longer classifying its shares exclusively as pure technology, but rather as a source of income, resilient to fluctuations and generating dividends even in times of contraction.
Dividends: a factor to consider before investing in Microsoft
Traditionally, technology companies are known to fail in their level and quality of stock performance. The financial community classifies them as fast growing stocks. Most of them do not even pay dividends, preferring to allocate their capital to the development of new projects, betting on a greater potential for future growth. Since 2005, Microsoft shares have paid quarterly and uninterrupted dividends that have been increasing year after year. In the last quarter of 2020, its investors received a dividend of $0.51 per share, which, while not huge, has been growing steadily over the years. Source: Microsoft. Evolution of dividends per Microsoft share since 2004. Chart prepared on January 28, 2021. Between 2004 and 2020, Microsoft's quarterly dividend has grown from $0.08 to $0.51, a 537% growth in just 15 years.