Tomahawk, WI 10/23/2013 (BasicsMedia) – Microsoft Corporation (NASDAQ:MSFT)’s market cap is slightly more than $292.42 billion. The company has collected a lot of revenue and enjoyed huge profits from a single product, Windows Operating System, in the past years. There have been calls for MSFT to diversify its investments so that it can stop overreliance on a single product bearing in mind the fluidity or volatility of the tech industry. It has lost a large percentage of the market share to Apple Inc since the demand for PCs, which is the largest market for its Windows OS, has diminished.

MSFT Never Fails to Report Earnings

MSFT remains one of the biggest companies in the world by market cap. It has made money for its investors largely through its ample dividend, despite the falling PC sales witnessed across the world. If there is one thing about MSFT that no one can argue with, is the fact that it constantly produces earnings, even in the worst of times. Its ample dividend is not the only way through which MSFT rewards its investors. If you look solely at the dividends, you will notice that it has been on a steady increase since 2008, signifying that MSFT is one of the most rewarding stocks.

The percentage of MSFT’s earnings that it pays out as dividends has been increasing over the last 5-year period. Moreover, this amount is expected to increase when MSFT publishes its first quarter 2014 financial results. MSFT is expected to announce revenues of not less than $17.80 billion. If MSFT achieves this target, it will be a huge improvement from last year’s amount of $16.01 billion. The stock has been doing quite well in 2013, having risen by slightly below 30%. Now that MSFT has embarked on restructuring and diversification, the stock will keep on rising.

MSFT To Benefit from Cloud Computing Investments

MSFT’s decision to focus on cloud computing is expected to give it an upside. Thus far, it has been difficult to track the company’s progress based on the current market or industry trends. The company has developed a new reporting structure tat it will use from Oct 22, 2013 when it announces its first quarter of 2014 financial results. Investors can now follow the company’s progress by paying special focus on a number of key performance indicators that MSFT will include in its quarterly financial reports going forward. This is a huge departure from the past.

Diminishing PC Sales to Mess MSFT

Diminishing PC sales across the world will have a negative bearing on MSFT’s first quarter financial results. MSFT is not the only company to have been affected by the diminished PC sales, since other tech firms such as Dell and Hewlett-Packard will suffer. Commercial revenue as well as what MSFT collects as revenue from its Devices and Consumer division are also expected to do relatively well, with the exception of dropping PC sales. Several analysts are quite pessimistic about MSFT, and they cannot be blamed based on previous results.

However, I believe that MSFT is on the right track. It is carrying out several projects all at once and these are expected to help the company better revenues and profits in the coming financial years.

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