Microsoft (MSFT) Stock 2026 Review

Mika L.
Written by Mika L.
Financial Content Writer

Microsoft4.5/5

MSFT (NASDAQ)

Dividend yield
0.73%
Distribution
Quarterly
1-Year Return
14.38%
5-Year Return
122.02%

Microsoft (MSFT) stands out as a highly rated 4-star stock by Morningstar, currently trading at a discount to its fair value, making it a compelling choice for long-term investors. With a modest dividend yield of 0.73% and impressive 1-year and 5-year returns of 14.38% and 122.02%, respectively, it demonstrates solid financial health. Despite concerns over rising capital expenditures related to artificial intelligence, analysts maintain a B+ rating with a median 12-month price target of $645, underscoring its potential for growth.

Pros:

  • Strong long-term performance
  • Discounted valuation

Cons:

  • Concerns over AI capital expenditures
  • Market competition

Microsoft (MSFT) may be a suitable investment for long-term investors seeking exposure to a financially robust technology leader with a strong historical performance and growth potential. While the modest dividend yield may not attract income-focused investors, those looking for capital appreciation and a stable market position may find Microsoft an appealing addition to their portfolio.

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