Now Is Exactly the Right Time to Invest in Microsoft Corporation (MSFT)

The thorn in Microsoft’s flesh is not Ballmer but rather bureaucracy. Microsoft’s internal structure was set up in a manner that promoted unhealthy internal competition. Dividing the company into departments rather than by function made employees and executives focus exclusively on producing superior products rather than producing what best met existing consumer needs. In fact, former Windows head Steven Sinofsky reportedly used to subvert any products that threatened the importance of his segment.

Although it will take some time before the dust settles, organizing Microsoft by function rather than product is a definite step in the right direction. Apple uses functional organization and is in fact a testament to the positive results that collaborative structures have.

Through functional organization, Microsoft Corporation (NASDAQ:MSFT) will achieve great synergies and will in the long run be able to anticipate customer needs more accurately. This will be a game changer as we have clearly seen that Microsoft’s biggest mistake is not the lack of innovation, but rather poor timing.

Dividend not to be ignored

Dividend Channel affirms that Microsoft is the top dividend stock of the Nasdaq 100, citing attractive valuation metrics. Its annual dividend yield of 2.9% is significantly higher than the average dividend paying stock in the Nasdaq 100 which yields 2.1%. Microsoft has also been able to increase its dividend progressively since 2005.

Conclusion

If you want to make your money on the rally, constantly gambling on when to pull out, then Google and Apple remain top picks. Microsoft, on the other hand, is less volatile, undervalued, and a good income investment. The best time to invest in Microsoft Corporation (NASDAQ:MSFT) is now. Don’t wait until the market at large understands its great potential and drives the price through the roof.

The article Now Is Exactly the Right Time to Invest in Microsoft originally appeared on Fool.com and is written by Lennox Yieke.

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

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