Research In Motion Ltd (BBRY), Nokia Corporation (ADR) (NOK) & Microsoft Corporation (MSFT): Of This Trio, Only One Is Going to Win the Mobile Bronze

From Google’s playbook

Microsoft Corporation (NASDAQ:MSFT)’s Windows Mobile OS is the heart of the Lumia. While that phone is a make or break product for Nokia Corporation (ADR) (NYSE:NOK), it’s basically a way for Microsoft to show off its updated mobile OS. It reportedly cost Microsoft around $1 billion for the privilege in development payments. That said, now that the Lumia is on sale, Nokia is paying more in royalties than Microsoft Corporation (NASDAQ:MSFT) is paying Nokia.

Microsoft’s mobile OS has gotten good marks. That’s allowed Microsoft Corporation (NASDAQ:MSFT) to enter into discussions with other handset makers in a much better position than it would have been in without the Nokia Corporation (ADR) (NYSE:NOK) phone. Thus, the Nokia deal has been money well spent, particularly as Google Inc (NASDAQ:GOOG) has started to shift from partner to competitor with many of its Android customers.

As Android users start to consider life beyond Google Inc (NASDAQ:GOOG), Microsoft increasingly looks like a good option. Research In Motion Ltd (NASDAQ:BBRY)s closed model doesn’t allow for sharing and Nokia Corporation (ADR) (NYSE:NOK) no longer has its own OS. While Microsoft Corporation (NASDAQ:MSFT) may never be the market share leader, it has a good chance to be a solid number three player by offering its OS to anyone who’s willing to use it. Interestingly, that’s aping a page from Google Inc (NASDAQ:GOOG)’s mobile playbook.

The winner?

It’s too soon to call a winner in the race for the bronze. That said, it looks like Microsoft is the best positioned to finish in third place. And there’s plenty more to like at the diversified technology giant.

The company’s top line has grown in nine out of the past 10 years. Earnings have been more erratic, but the company has earned more than $2 a share in each of the last three years. Its dividend, meanwhile, has been increased annually for a decade.

With a yield of around 2.7% and a price to earnings ratio in the upper teens, Microsoft Corporation (NASDAQ:MSFT) is a good option for growth and income investors. That’s bolstered by a massive business and the company’s increasingly good prospects in mobile. The dividend yield, meanwhile, provides a floor for the shares, limiting downside risk.

The article Of This Trio, Only One Is Going to Win the Mobile Bronze originally appeared on Fool.com.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT). Reuben 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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