Microsoft Corporation (NASDAQ:MSFT) Has Attractive Fundamentals

Microsoft Corporation (NASDAQ:MSFT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MSFT, it is a dependable dividend payer that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Microsoft here.

Established dividend payer with adequate balance sheet

MSFT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that MSFT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MSFT appears to have made good use of debt, producing operating cash levels of 0.51x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:MSFT Historical Debt January 15th 19
NasdaqGS:MSFT Historical Debt January 15th 19

For those seeking income streams from their portfolio, MSFT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.8%.

NasdaqGS:MSFT Historical Dividend Yield January 15th 19
NasdaqGS:MSFT Historical Dividend Yield January 15th 19

Next Steps:

For Microsoft, I’ve put together three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for MSFT’s future growth? Take a look at our free research report of analyst consensus for MSFT’s outlook.
  2. Historical Performance: What has MSFT’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MSFT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.