Tech giant Microsoft Corporation (MSFT) reported fiscal-third quarter earnings on Thursday, April 27th. Judging by the market’s reaction, Microsoft’s quarter was a disappointment. The stock fell 2% after reporting. But, the stock quickly retraced its losses, as investors focused once again on the bigger picture: Microsoft is in growth mode.
The company’s cloud-based offerings like Office 365 and Azure are growing like weeds. These platforms represent the technology of the future, and will fuel Microsoft’s growth for many years ahead. In the meantime, Microsoft is an excellent dividend stock. It is a Dividend Achiever, a group of 265 companies in the S&P 500 Index that have raised their dividends for 10+ years in a row.
Investors should not be fooled by the market’s initial reaction: Microsoft’s quarterly report was anything but disappointing. Its hardware sales came up slightly short of expectations, but more importantly, its cloud platform continued its explosive growth.