Microsoft Corp. shares hit a new five-year high Thursday, as growth in the company's online software business helped the stock break out of its mostly decade-long rut despite lingering concerns about lackluster demand for its latest operating system and plunging computer shipments.
Several factors have contributed to the company's sharp share gains, such as the growth and excitement in Microsoft's videogame business, the market's strong run, the company's stable cash flow, and its 2.7% dividend yield and regular stock buyback program, both popular with value investors.
Yet beneath those trends, its enterprise software business--where Microsoft earns 70% of revenue and nearly 90% of operating profit--is undergoing a revival online. As the largest maker of PC software, Microsoft has turned to the Web, especially for businesses, as the way to leverage its $70 billion software franchise into the so-called cloud computing era.
Of the current 600 million users of office-productivity software, 90% use Microsoft products, according to Gartner. MSFT SMART MONEY PATIENCE-PATIENCE=BIG-BIG $$$$$$$$$$$
Look for an increase for the November divy. When I bought it was yielding nearly 3.5 percent and divy would keep going up. No brainer folks. Buy it put it away and look for increasing dividend checks every year.