Ask a Fool: Our Microsoft Stock Analysis

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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