Get to know Microsoft history, its products, and financial performance! In this article, you will find out everything about prospects of the IT giant and figure out whether it is worth having Microsoft shares in your investment portfolio.

Microsoft has been always present in top 10 ratings of thriving US and global corporations. Interestingly, it is difficult to pinpoint one primary reason for its worldwide fame. The company owes its prosperity to the genius of Bill Gates, the global leadership in software supplies, and nonstop development of innovative technologies. The IT behemoth has always been in the media spotlight. If you are inspired by Microsoft achievements, you can be somehow involved in its success. Anyone who has bought Microsoft shares belongs to its success story. Read the article to find out how to put this idea into practice.

Microsoft history

The company was founded in 1975 when school mates Bill Gates and Paul Allen programmed an interpreter of the Basic language for the Altair 8800 microcomputer. The future IT giant earned $16,000 over the first year after its foundation. Their earnings increased to $7.5 million at the end of the 5th year in business. Ten years later, Microsoft made profits of $150 million annually.

The company launched its IPO in March 1986. The opening stock price was $21 apiece. Later, when securities of the international corporation had been listed on global stock exchanges, 31-year old Bill Gates was recognized as the youngest billionaire over the whole US history.

Interestingly, the brainchild of Bill Gates went through a rough period at that time. The company was targeted by numerous rivals for abusing its monopoly business power to squeeze competitors out of the market, for its aggressive marketing that induces consumers to buy its costly products, and for tough anticompetitive behavior to grab attention on the World Wide Web.

In the early 1980es, one of the co-founders, Paul Allen, resigned from Microsoft due to his disease. Nevertheless, his brilliant ideas were implemented later. In November 1985, Microsoft rolled out the legendary Windows, the first version of the graphic operating system. In the course of time, the company designed more innovative and sophisticated software products on a regular basis.

Once Microsoft went public, its stock has been in the long-term bullish trend since then. At the same time, Bill Gates, Microsoft owner and the wealthiest person on the planet in parallel, has been getting out of the limelight.

Nowadays, Microsoft is one of the top 10 most valuable companies in the world. It produces software for various consumer electronics such as PCs, play stations, mobile devices, etc.

Microsoft shares

At present, Microsoft stock is the linchpin of the market capitalization of the high-tech sector of the US stock market. Despite the fact that Microsoft has already gone through its boom, the corporation remains one of the strongest revenue performers. So, it offers lucrative investment opportunities. Let’s try to gain an insight about them.

Microsoft shares are traded under the MSFT ticker symbol on the Nasdaq stock market. Microsoft stock is a component in the US three benchmark stock indices: the S&P 500, the Dow Jones, and the Nasdaq Composite.

Since its debut on the stock exchange, Microsoft stock has been extending a steady bull run. Notably, the stock has been trading firmly at elevated levels in the last two years for the obvious reason. Microsoft is one of the winners from the restrictions imposed amid the COVID-19 pandemic. In 2020, a lot of companies shifted focus towards cloud services. This shift of priorities sent Microsoft stock quotes soaring. In June 2021, Microsoft marked a new milestone as its market capitalization topped $2 trillion for first time ever.

Look at the chart displaying the dynamic of Microsoft stock at the moment of writing this article.

For accurate forecasts of Microsoft stock, you are recommended to monitor the company’s corporate earnings reports as well as updates of its strategies and development plans. Besides, you should keep track of the company news that can influence Microsoft market quotes. This and other information is freely available in the analytical section on the InstaForex website.

Dividend payments

Since 2004, Microsoft has been paying dividends to its shareholders on a quarterly basis. Remarkably, since that time until September 2021, quarterly dividends paid by Microsoft swelled 600%.

To the credit of the management board, Microsoft did not stop paying and even scaling up part of the company’s profits allocated for dividends during the global economic crises in 2008 and 2011.

At present, Microsoft pays a quarterly dividend of $0.56 per share.

Does it make sense to invest in Microsoft stock?

Despite its jaw-dropping market capitalization surpassing $2 trillion, Microsoft has been expanding its business empire. Current financial records do not raise doubts about a further steady bullish trend of its stock. On the credit side, Microsoft has something more to offers its investors.

Being one of the Big Five companies in the US IT industry, an investor can be sure of lower volatility of Microsoft shares than the ones of smaller companies. A low-volatile financial instrument suits perfectly the long-term investment strategy.

Another argument in favor of Microsoft investment is steady dividends paid to shareholders.

However, there is a fly in the ointment. On the back of the ongoing coronavirus pandemic and soaring market quotes of high-tech companies, Microsoft shares are now trading at historic highs. So, the current price of Microsoft shares might be inflated for retail investors.

If you are still interested in trading Microsoft shares but you doubt your financial proficiency, a great solution would be to practise trading on a free demo account with InstaForex. This simulator enables you to master trading skills in a virtual market before you invest your cash in any securities.

Conclusion

Now let’s try to answer the crucial question: to invest in Microsoft shares or not? The answer depends on what result you expect from your investment. If you are looking for a trading instrument to yield instant fat profits, Microsoft shares are not the best option. They fit into the idea for reliable long-term investments in one of the world’s prosperous companies having a lot of competitive advantages, paying steady dividends, and generating strong revenue.