This article is part of our Rising Star Portfolios series.

Last week I penned an article highlighting what I believe to be the 5 Biggest Contrarian Plays Today. This week, I'm buying four of them, plus one additional stock I didn't highlight.

The four plays I'm buying are Research In Motion (Nasdaq: RIMM), Annaly Capital Management (NYSE: NLY), Computer Sciences Corp (NYSE: CSC), and AIG (NYSE: AIG). As I highlighted last week, each of these stocks has been beaten down by the market. At the levels they trade at today, I believe each of these stocks are good bets on the future not being as bleak as expected.

The fifth stock I'm buying is Microsoft (Nasdaq: MSFT). Like Cisco (Nasdaq: CSCO), Microsoft is dominant in its market, is sitting on a boatload of cash (nearly $40 billion in net cash or one-sixth its market cap), and is cheap any way you look at it. Microsoft trades for a P/E ratio of 10.2, an adjusted for net cash P/E ratio of 8.3, and a price to free cash flow ratio of 9.4. Better still, the company pays out a 2.4% dividend, which will provide cash to invest while waiting for Mr. Market to come to its senses.

While some will say Microsoft's stock hasn't moved in years, I'm fine with that. I would rather own a dividend-paying dominant stock that the market undervalues than a hot stock that could cost me dearly if things go wrong. At these levels, the market is pricing in an absurdly pessimistic future for Microsoft.

Tomorrow, I'm buying $400 of each of these stocks for a 3% position in each.

This article is part of our Rising Star Portfolios series, where we give some of our most promising stock analysts cold, hard cash to manage on the Fool's behalf. We'd like you to track our performance and benefit from these real-money, real-time free stock picks. See all of our Rising Star analysts (and their portfolios) here.

Dan Dzombak can be found on his Twitter account: @DanDzombak. He owns shares of Annaly Capital Management. The Motley Fool owns shares of Microsoft and Annaly Capital Management. The Fool owns shares of and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Microsoft and Cisco Systems. 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.