Buy Microsoft shares: Forecasts, Strategies, Targets And Dividends
Published: 12 September 2020 by Valentina
Few companies can claim to have changed the world of technology, but the venture founded by Bill Gates and Paul Allen in Washington has certainly done so, becoming one of the most popular, profitable, and influential companies in the world. So, is it true that buying Microsoft shares is definitely a great deal?
Well, it’s not that simple. In our guide, we will analyze the financial situation of the company, the performance of its shares, and the future prospects of this software giant. In the end, you will certainly have a more precise idea about this investment.
The first step is to choose the broker to buy Microsoft shares. Below, we have listed the best and safest; among these eToro also offers a revolutionary automatic investment system.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Buy Microsoft shares: A little history
Founded in the late 1970s by childhood friends Bill Gates and Paul Allen, Microsoft was born when these genius minds created a BASIC interpreter for the 8800 processors of the time.
Microsoft later created MS-DOS, the company’s first true operating system and its biggest commercial success.
In 1990, there was the introduction of the MS-DOS graphical extension: Windows was born.
Over the years, this software has evolved to become the best-selling operating system in the world, which was included on millions of PCs.
Microsoft has been one of the most influential companies in the IT world for nearly forty years. An innovative company that imposes an almost uncontested domination.
How to buy Microsoft shares?
Buying Microsoft shares is not complicated. This is a giant listed on Wall Street and you can invest with a PC and a CFD broker directly from home, without paying commissions.
CFDs (contracts for difference) are regulated derivatives that have the same price as the corresponding asset and allow you to invest both up and down (short selling).
Here’s how you invest with these CFD brokers:
- To buy Microsoft shares, you have to buy the “MSFT” CFD. You earn money, if stock prices go up.
- If, on the other hand, you believe that Microsoft stock prices will go down, you have to sell the “MSFT” CFD. In this way, you will make a profit, if the prices go down.
Once you have reached the desired profit (up or down), you can close the operation and get a net profit (if you have made the right forecast), without commissions to pay.
Buy Microsoft shares with the best platforms
The best trading platforms are those with a regular FCA or CySEC license, which offer the possibility to trade on many different assets, including stocks, cryptocurrencies, etc.
These CFD Brokers offer different services and in order to choose the most suitable where to buy Microsoft shares, we have carefully evaluated the characteristics of each one. Our final advice is to choose eToro, ForexTB and IQ Option as the safest and most convenient on the market.
eToro: Semplicity and automatic trading
eToro needs no introduction: It offers the most used trading platform in the world and its FCA license confirms the reliability and safety of this broker.
Here is the screenshot of the Microsoft stock as it appears on the eToro platform:
To buy Microsoft shares (or sell them) you need to click on “Invest”, decide whether to buy or sell them and how much to invest in the operation.
For those who do not like statistics and graphs, eToro has created a revolutionary automatic investment system, which allows you to copy the market operations of the best traders in the world (on eToro), at no additional cost.
Copy Trading (this is the name of the system) is used in this way:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders:
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading Course and Free Trading Signals
ForexTB has emerged among the online brokers, because of its focus on the support and training of investors. Moreover, the CySEC license has allowed it to spread rapidly throughout Europe.
The trading platform is in general very important and to expand the choice, ForexTB offers two free options:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
The training offered by this broker starts with a trading course (an ebook) considered the best on the market. This is a pdf that explains online trading very clearly and it is also free, if you click on the link below:
The support, on the other hand, is based on free Trading Signals that the broker sends to all investors. These are indications studied by the Trading Central, which have a success rate of 70%. To receive them, just use the official link below:
IQ Option: Minimum deposit and training
IQ Option differs a lot from other online brokers, especially considering the very low minimum deposit, which allows anyone to enter the world of trading.
The minimum deposit required by IQ Option to open a real account is 10 Euros.
This low entry threshold allows you to practice even in real life with very minimal risks.
Buying Microsoft shares with IQ Option means investing a few Euros and experiencing the excitement of real financial investments.
IQ Option is regulated by FCA and therefore it is safe and reliable.
The trading platform of this broker is clear and very complete, it includes the main technical analysis indicators and the tools needed to trade on each market.
If you have no experience in online trading, this broker has a training area, where you can consult for free all the information necessary to achieve an excellent level of preparation.
If you don’t want to risk anything, you can still start with the Demo account. In this way, you will not use real money. After that, you can invest as little as 10 Euros and trade for real.
Buy Microsoft shares: Real-time quote
Microsoft NASDAQ Equities
Microsoft is headquartered in Redmond (Washington) and in 2019, it surpassed $ 1 trillion in market capitalization, reaching Apple and Amazon.
Listed on the NASDAQ of the New York Stock Exchange under the ticker MSFT, it is one of the most important stocks in the entire Wall Street market.
Many investors aren’t too keen on buying a stock when it’s at an all-time high, but there are always exceptions: Microsoft is one of them.
Many analysts find Microsoft one of the most undervalued stocks on the market, with truly impressive untapped potential.
Recognizing a profitable investment is not easy, but in this case appearances are probably not deceiving.
The Microsoft brand is stronger than ever and the company continues to grow and expand rapidly. It is enough to interest any investor, even those who want to learn how to invest from scratch.
The chart below unequivocally shows what has been said: The growth in Microsoft stock prices over the past 5 years.
Microsoft shares dividends
Microsoft pays an annual dividend of $ 2.04 per share, with a dividend yield of 0.96%.
The company has increased its dividend for the past 16 consecutive years and is increasing it by an average of 28.57% every year. Microsoft pays 35.42% of its earnings as a dividend.
Is buying Microsoft shares worth it?
Microsoft posted better-than-expected fourth-quarter fiscal results despite the coronavirus. Additionally, the tech giant is willing to continue growing in the long term thanks to its large investments and successful transition to cloud computing.
In essence, buying Microsoft shares is worthwhile. Indeed, many analysts consider it an excellent investment, perfect to start trading online.
Microsoft increased its fiscal 2020 operating income to $ 53 billion; from $ 43 billion a year ago. And with $ 73.2 billion in cash and short-term investments in excess of total debt, the tech giant appears immune to long-term financial hardship.
The cash available in Microsoft’s coffers allows the company to continue acquiring companies and doing business even as the global economic market slows.
If we have to name Microsoft’s competitors, the list can be very long. However, those that can really compete with this software giant are few. Here are the main ones:
Microsoft stock forecast
In recent years, Microsoft’s share price has grown despite the flattening of revenue growth. Even after the collapse in March 2020, the stock has resumed its previous trend.
This increase is related to the company’s growing operating margins, as it is scaled and adapted to the new cloud-based market.
In order to make reliable predictions on the future of the Microsoft stock, we show you the analyzes of the major investment banks:
- Oppenheimer set a “pending” rating on the software giant’s stock.
- Summit Insights has issued a “buy” rating on the stock.
- Jefferies Financial Group has assigned the company a “buy” rating.
- Morgan Stanley lowered Microsoft to an “in line” rating.
- Fundamental Research gave the stock a “buy” rating.
Buy Microsoft Stock: Strategies for Investing
As we have seen, major international analysts tend to be bullish on this company’s stock.
But to generate profits from equity investments, you need to respect some fundamental rules:
- Money Management: Never invest more than 3% of the available capital on a single transaction.
- The Stop loss must be set at the time of the order, taking into account the Fibonacci retracements and the Pivot Points.
Here are the strategies deriving from the forecasts of the main international analysts:
- In the short term (a few weeks or months), you can invest upwards as long as the price is below the target of $ 260.
- In the long term (over 6 months), the trend is always bullish, but instead of setting a target, it is preferable to follow the trend by approaching the stop loss to the price (with a margin for normal fluctuations)
Microsoft shares: target price
Analysts at the eToro Trading Desk have issued purchase ratings on Microsoft: Their twelve-month target price is $ 260.00.
This software giant seems to have suffered little from the coronvirus crisis and the company’s financial situation is really solid.
Buying Microsoft shares can be a very profitable investment despite the stock being in uncharted territory.
Always remember that trading is not an exact science and carries risks. If you have little experience, start by practicing on a free Demo account, then make the minimum deposit required by the broker you have chosen, and invest seriously.
Here are the official links to access the Demo accounts of the best CFD Brokers for free:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Access the IQ Option Demo account for free with this link
Yes, it is a solid company with high liquidity and the shares are rising.
Leading analysts have issued a buy rating for the Microsoft stock.
The 12-month target price for Microsoft stock is $ 260.00 per share.
The best platform for investing in Microsoft is eToro, which allows you to invest safely without paying commissions.