How Microsoft Corporation (MSFT) Is Poised For Plenty of Capital Gains

The Nokia purchase could do wonders

In addition to shoring up its core Windows business, I remain optimistic that Microsoft’s purchase of Nokia’s device business could eventually pay off big in the future. While it’s not reasonable to expect that Microsoft will become the “next Apple,” Microsoft can leverage its brand and the talent and IP from Nokia to sell a line of smartphones profitably. It’s not clear how much upside this will drive for the company, but the potential seems there.

The Foolish bottom line

Microsoft sports a great yield, generates plenty of cash, and is now unleashing a gigantic buyback program. All of this comes just ahead of what could be a dramatic turn in sentiment for the software giant thanks to the upcoming Windows 8.1 launch and the imminent installation of new leadership. I like Microsoft here and think there’s plenty of potential for both dividend growth as well as capital appreciation.

The article Microsoft’s New Buyback and Larger Dividend Sweeten the Deal originally appeared on Fool.com and is written by Ashraf Eassa.

Ashraf Eassa has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. 

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