In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who writes, "What are your thoughts on Microsoft (NASDAQ:MSFT)? I bought for $17 per share during the Great Recession and added a couple of years ago at $28. A lot of folks do not like it. But, it keeps climbing higher, and it is a great dividend payer."
Brendan notes there are risks with Microsoft. It's got a culture of bureacracy, a new CEO, and it spends a huge amount on research and development, without much to show for it. That said, the company has a great competitive advantage, great margins, and it does pay a nice dividend. Jason thinks it's likely to be a steady dividend payer going forward, and it's not a bad stock for your portfolio if that's what you're looking for.
Both think the stock is somewhat underappreciated among investors, it could be a market beater going forward, if you include its rising dividend. However, it's not without risk of disruption from Google (NASDAQ:GOOGL) (NASDAQ:GOOG) and others, particularly its consumer business.
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Brendan Mathews owns shares of Google (A and C shares). Jason Moser has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Google (A and C shares). It also owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.