Microsoft announced its quarterly dividend on June 16
Microsoft Corporation (NASDAQ: MSFT) is one of the Big Five tech companies in the United States, along with Alphabet (GoogL), Apple (AAPL), Amazon (AMZN) and Facebook (FB). Microsoft makes computer software, consumer electronics, personal computers, and related services. This afternoon, MSFT was last up 1% to $ 280.40, although it won’t Receipt of the JEDI scholarship like in 2019.
On June 16, Microsoft announced that the board’s independent directors have elected Satya Nadella as chairman of the board and John W. Thompson as lead independent director. The board also announced a quarterly dividend of $ 0.56 per share payable to shareholders of record on August 19th on September 9th. Microsoft stock currently has a forward dividend of $ 2.24 and a dividend yield of 0.81%.
Additionally, Microsoft stock is up about 34% year-over-year and remains well above its September 2020 low. Additionally, MSFT’s shares are up 27.5% year-to-date, hitting today’s record high of $ 280.69 reached.
If you look at earnings, Microsoft has broadly outperformed earnings expectations in all four of its most quarterly earnings reports. For the second quarter of 2020, MSFT beat analyst estimates by a margin of $ 0.12 and reported earnings per share (EPS) of $ 1.46. Microsoft’s earnings per share rose to $ 1.82 in the third quarter of 2020, beating expectations by $ 0.28. For the fourth quarter of 2020, Microsoft reported another surge in earnings, rising to $ 2.03 per share, beating estimates by $ 0.39. For the first quarter of 2021, MSFT reported earnings per share of $ 2.03, beating expectations by $ 0.25. Microsoft’s next win date is scheduled for July 17th.
From a fundamental point of view, Microsoft is a very well rounded company. MSFT has increased its revenue by 48% since 2017. Microsoft also has an excellent track record of $ 125 billion in cash and a relatively manageable $ 81.26 billion in debt. The only detail that could be seen as a fundamental issue with Microsoft stocks is valuation. MSFT has a market capitalization of $ 2.09 billion and a P / E ratio of 37.84, which would be considered high by most standards. However, Microsoft’s long history of strong and consistent growth coupled with its stock’s price-to-earnings ratio of 33.33 suggests that Microsoft stock may still be undervalued.