Why the dividend investor may take a look at NASDAQ:MSFT.

Take a closer look at MICROSOFT CORP (NASDAQ:MSFT), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:MSFT excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for NASDAQ:MSFT

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:MSFT earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 5765.50, MSFT pays a better dividend. On top of this MSFT pays more dividend than 91.46% of the companies listed in the same industry.
• On average, the dividend of MSFT grows each year by 10.00%, which is quite nice.
• MSFT has paid a dividend for at least 10 years, which is a reliable track record.
• MSFT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 27.36% of the earnings are spent on dividend by MSFT. This is a low number and sustainable payout ratio.
• MSFT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for NASDAQ:MSFT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:MSFT has earned a 8 out of 10:

• An Altman-Z score of 8.66 indicates that MSFT is not in any danger for bankruptcy at the moment.
• MSFT's Altman-Z score of 8.66 is amongst the best of the industry. MSFT outperforms 87.54% of its industry peers.
• The Debt to FCF ratio of MSFT is 1.08, which is an excellent value as it means it would take MSFT, only 1.08 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.08, MSFT is in the better half of the industry, outperforming 77.58% of the companies in the same industry.
• MSFT has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
• MSFT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Assessment of NASDAQ:MSFT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:MSFT has achieved a 8:

• MSFT has a Return On Assets of 17.56%. This is amongst the best in the industry. MSFT outperforms 98.58% of its industry peers.
• With an excellent Return On Equity value of 35.09%, MSFT belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
• MSFT has a Return On Invested Capital of 24.46%. This is amongst the best in the industry. MSFT outperforms 98.22% of its industry peers.
• MSFT had an Average Return On Invested Capital over the past 3 years of 24.79%. This is significantly above the industry average of 10.83%.
• With an excellent Profit Margin value of 34.15%, MSFT belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
• In the last couple of years the Profit Margin of MSFT has grown nicely.
• Looking at the Operating Margin, with a value of 42.33%, MSFT belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
• In the last couple of years the Operating Margin of MSFT has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of MSFT

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.