Ask a Fool: Our Microsoft Stock Analysis

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who writes, "What are your thoughts on Microsoft ? I bought for $17 per share during the Great Recession and added a couple of years ago at $28. A lot of folks do not like it.  But, it keeps climbing higher, and it is a great dividend payer."

Brendan notes there are risks with Microsoft. It's got a culture of bureacracy, a new CEO, and it spends a huge amount on research and development, without much to show for it. That said, the company has a great competitive advantage, great margins, and it does pay a nice dividend. Jason thinks it's likely to be a steady dividend payer going forward, and it's not a bad stock for your portfolio if that's what you're looking for.

Both think the stock is somewhat underappreciated among investors, it could be a market beater going forward, if you include its rising dividend. However, it's not without risk of disruption from Google and others, particularly its consumer business. 

Will this stock be your next multibagger?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

The article Ask a Fool: Our Microsoft Stock Analysis originally appeared on

Brendan Mathews owns shares of Google (A and C shares). Jason Moser has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Google (A and C shares). It also 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story