Investing in Microsoft has the potential to turn $10,000 into a million dollars.

From Nasdaq: 2024-09-21 05:20:00

In the past decade, Microsoft stock (NASDAQ: MSFT) has delivered annual returns of almost 27%, significantly outperforming the S&P 500 index’s returns of 13% over the same period. A $10,000 investment in Microsoft a decade ago would now be worth $107,950, making it an ideal investment for building a million-dollar portfolio.

Microsoft’s revenue for fiscal 2024 reached $245 billion, a 16% increase from the previous year, with net income at $88 billion. The tech giant has seen a nearly threefold increase in revenue and a quadrupling of net income over the past decade, with a compound annual growth rate of almost 11% for revenue and 15% for earnings.

With a market cap of $3.2 trillion, Microsoft is the second-largest company in the world. Analysts project robust growth in revenue and earnings for the company in the upcoming years, driven by lucrative end markets such as cloud computing, expected to generate $2 trillion in revenue by 2030, offering Microsoft significant growth opportunities.

Microsoft’s success in these end markets could push its revenue to exceed $500 billion by fiscal 2030, potentially leading to a market cap of $5.6 trillion. The company’s recent dividend increase and forward dividend yield of 0.76% make it an attractive long-term investment option for investors looking to construct a million-dollar portfolio.

Investors considering Microsoft stock should bear in mind that while the company shows great promise, there are other high-performing stocks in the market as well. The Motley Fool Stock Advisor team has identified 10 stocks with strong growth potential, offering investors the chance to achieve significant returns in the years ahead. It is essential to conduct thorough research and diversify investments to maximize returns in the stock market.



Read more at Nasdaq: Could Investing $10,000 in Microsoft Make You a Millionaire?