Microsoft (NASDAQ:MSFT) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons he's holding on to Microsoft's stock despite the 39% rise since he bought those shares a little more than a year ago.

 

Summary:

  • Reasonable valuation, with a market cap in line with a fair-value estimate.
  • Healthy balance sheet, with a debt-to-equity ratio of around 0.3 and a "AAA" debt rating.
  • Covered and growing dividend with a 36% payout ratio and an emerging trend of dividend hikes.

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Chuck Saletta owns shares of Microsoft. The Motley Fool 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.