Microsoft: Buy For The Value, Enjoy A Dividend Snack

Treading Softly Investing Group Follow Summary Microsoft remains a “Buy,” driven by robust earnings, cloud growth, and a 21-year dividend growth streak. MSFT's Q4 FY 2026 revenue surged 17.7% to $90.01 billion, with cloud revenue up 31.6% and commercial backlog soaring 84%. Trading at a 12% discount to a $558 fair value estimate, MSFT offers a potential 21% total return by 2027 and 16% annualized through 2032. Key risks include execution on $175 billion in AI CapEx and potential cyber breaches, but fundamentals remain strong, and dividend growth is expected to continue. Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More » Klaus Vedfelt/DigitalVision via Getty Images Co-authored by Kody's Dividends Never underestimate the power of a snack. I have four children, and often I can motivate them in a task or an outing by adding in a simple incentive—We'll get a This article was written by Treading Softly 5.1K Followers Follow Scott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings team Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.