Buy, Sell, or Hold: Microsoft

Before you go, we thought you'd like these...
Before you go close icon

Despite some of the challenges in its core business, Microsoft  shares are not expensive by any measure. The valuation metrics are firmly in value territory, and cash flow remains solid. Value investors can rest easy knowing that the 3% dividend yield is safe considering how much free cash flow that Microsoft generates.

At the same time, there don't appear to be any positive catalysts on the horizon, and PC headwinds may continue to weigh on results. There are some areas where Microsoft can capitalize, but it will need to execute on its transition to a devices-and-services company.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss how Microsoft looks at current prices.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

The article Buy, Sell, or Hold: Microsoft originally appeared on

Eric Bleeker, CFA, has no position in any stocks mentioned. Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading