Apple Inc. (AAPL), Microsoft Corporation (MSFT), Intel Corporation (INTC) – Dividends, Valuation, and Growth: The Perfect Combination

Growth and valuation

Intel, Microsoft, and Apple all have different valuations, and some are surprisingly good–for instance, free cash flow yields are 8.0%, 9.6%, and 10.9%, respectively. While Apple clearly wins this category,  it may not be able to continue to grow at the same clip it has in the past.  So you could expect its stock to remain around  $450 for quite some time.

Apple Inc. (NASDAQ:AAPL), Intel Corporation (NASDAQ:INTC), and Microsoft Corporation (NASDAQ:MSFT) show an earnings yield of 9.7%, 8%, and 5.5%, respectively. Despite Microsoft and Intel offering impressive valuations, Apple again wins in this area.

When comparing these three companies, Intel wins in regards to dividends, while Apple is clearly a better buy.  But Microsoft has outperformed its peers so far this year.  Year to date, its stock has grown the most as the chart below clearly shows.

Source: YCharts

We all know Apple’s stock has fallen the past year or so. And while Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) don’t measure up to Apple’s valuation, their stocks have been growing rapidly. All of these companies offer a nice combination of dividends, value, and growth.

Foolish bottom line

Microsoft is a stock that has become known for its dividend. Its shareholders consistently see dividends increase, while the company maintains a large amount of cash and a rising share price. Apple doesn’t have much of a history with dividends, but that is about to change. Intel Corporation (NASDAQ:INTC) sports a high dividend yield, a solid valuation, and a growing business.  Ultimately, none of them should disappoint.

The article Dividends, Valuation, and Growth: The Perfect Combination originally appeared on Fool.com and is written by Tyler Wofford.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple, Intel, and Microsoft. Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.