Microsoft (MSFT 0.86%) 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.
To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply. click here.
