10 Best Roth IRA Stocks to Buy According to Analysts

1. Microsoft Corporation (NASDAQ:MSFT)

Analysts Upside Potential: 30.7%

Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech giant that focuses on developing and marketing software, services, and hardware designed to create new opportunities, improve convenience, and add value to everyday life.

Recently, Microsoft Corporation (NASDAQ:MSFT) announced a ZAR 5.4 billion investment to expand cloud and AI infrastructure in South Africa, highlighting its commitment to digital transformation in emerging markets. This follows its earlier ZAR 20.4 billion investment in local data centers, aimed at improving cloud accessibility for businesses, government agencies, and startups.

In Q2 2025, Microsoft Corporation (NASDAQ:MSFT) reported $69.6 billion in revenue, reflecting a 12% year-over-year increase, while net income grew 10% to $24.1 billion. The company’s strong performance was fueled by a 21% rise in cloud revenue, though Azure’s growth continues to face some challenges. Meanwhile, AI services revenue skyrocketed by 157%, surpassing expectations. Microsoft remains financially strong, generating $22.2 billion in operating cash flow and closing the quarter with $17.4 billion in cash and cash equivalents. Additionally, it returned $9.5 billion to shareholders through dividends and stock buybacks.

On March 11, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.83 per share, which was in line with its previous dividend. Overall, the company maintains a 19-year streak of consistent dividend growth, which places it on our list of the best Roth IRA stocks. As of March 23, the stock has a dividend yield of 0.85%.

Overall, Microsoft Corporation (NASDAQ:MSFT) ranks first on our list of the best Roth IRA stocks according to analysts. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MSFT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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