Tom Reese/Paul Rubillo, Dividend.com
Microsoft (MSFT) announced late Thursday that it will open retail store locations that will which will sell computers installed with Microsoft software as well as other company products.
The company is hoping to follow Apple's (AAPL) success in getting its brand out to many consumers that had never embraced or knew much about Apple products.
We are not sure the timing of this makes any sense, especially with retailers looking to scale back their exposure. There is no question the company should be able to secure better lease terms as many vacancies are to be found. Many people already are familiar with the Microsoft brand and their products. For Apple, this appeared to be a much bigger deal and it has paid off. The company would be better off buying other areas of technology and increasing their scope that way.
The Bottom Line
We had removed shares of MSFT from our “Recommended” list on Oct.6, when shares traded at $26.32. The company has a 2.70% dividend yield, based in last night’s closing stock price of $19.26. The stock has long-term technical support in the $16 price area. The stock faces overhead resistance at the $23-25 levels. We would remain on the sidelines for now.
Microsoft (MSFT) is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
