#4 - Microsoft (NASDAQ:MSFT)
Just because you’re playing defense doesn’t mean you have to stay away from the tech sector. Particularly when you’re investing in Microsoft Corporation (NASDAQ: MSFT). In addition to its legacy software solutions, the company’s reach expands into many of the economy's fastest-growing sectors, including cloud computing, gaming, and cybersecurity.
In the short term, Microsoft stock may be under pressure as the Federal Trade Commission (FTC) seeks to block its acquisition of Activision Blizzard (NASDAQ: ATVI) on anti-trust grounds. However, many investors can look at this as heads they win, tails they still win proposition.
That’s because if the deal goes through the company’s cloud computing, enterprise business units won’t be affected. And if the deal is rejected, the company can put that $69 billion to other uses.
Either way, analysts are projecting average earnings growth that exceeds 16% in the next five years. And that should allow for more than enough stock price growth to offset the dividend that “only” yields 1.05% but has been increasing for the last 18 years.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $414.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 27 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $503.03 (21.5% Upside)
