The Dynasty

Here is the part of the story. Changed you're mind, read the entire story.


When one label, company, or team rules over all the others we call it a dynasty. Well then what better way to describe the behemoth known as Microsoft. As a full disclaimer, I guess I should mention that I owe shares of Microsoft Corp. My interest in this tech giant began when they finally realized that holding over billions of dollars in cash was not in the best interest of their shareholders. At the time, the market was a little dicey and quality companies were hard to come by and Microsoft was just sitting on mounds of cash. Then they decided to flip the script. They offered a special $3 a share dividend for each share of stocked owned. And the nice thing about the stock market is they even tell you when the last date is that you can get into a stock to get a piece of the dividend. And to put this offer into perspective, most companies and even Microsoft’s normal dividend after their special offering is usually cents to the share (Microsoft is around .08c a share). And after doing a little research today they still have way more money that they know what to do with. Microsoft has increased at its fastest pace for the last three quarters and to keep the dough from piling up too high they are going to continue to take measure to give their shareholders a good return on their investment. Check out this recent article:

http://seattlepi.nwsource.com/business/240395_msftdividend13.html?source=rss

Now for even better news…the sleeping giant is moving. Many have argued that Microsoft is so large now and their technologies are so widely used they have little reason to innovate. However, in the great capitalist country called America there is no such thing as a day off.
In 2006, Microsoft plans to shake things up again with the launch of a brand new version of its operating system and it’s Windows Office platform. The operating system as most of you may know as Longhorn is now being called “Vista”. And the unveiling of the new Windows Office Suite will be called Windows Office 12. In an even shorter timeframe, Microsoft should see a bump in activity from the late 2005 release of its XBOX 360. A buzz on the streets has been created about the next generation console that will hit the streets being the unveiling of Sony’s Playstation 3 (slated to be sold in spring of ’06).

My recommendation is buy and hold Microsoft for the long haul. In this industry, cash is kind and they have plenty of it. If you’re looking for a little help on when to buy the company with the ticker MSFT. I would buy on any pullback in the stock, the high 25s and low 26 dollar range are adequate.
Ball ‘Til You Fall Rule #1: Show Me the Money…Companies that pay and increase their dividends over time are great investments and provide a steady stream of portfolio income.

Disclosure: I own shares in Microsoft Corp.