Microsoft, the world’s largest software maker by revenues, has paid dividends since 2003. It is believed to be a dividend haven, considering its sustained growth in payouts to investors.
Microsoft has recently restructured itself as ‘One Microsoft’. After the shake-up, the management wants to focus on major technology trends such as big data, cloud services and mobile devices. It has already acquired Nokia’s handset business, which accounts for 81% of its Windows Phone sales.
With the acquisition, Microsoft hopes to increase its share in the smartphone market to 15% by 2018. It also estimates that Nokia’s businesses will bring in $2.3-4.5 billion annually in operating income.
In the cloud services arena, Microsoft’s office 365 has an annual run-rate of more than $1.5 billion, and more than 350% growth in its seats. Windows Azure, its cloud services offering, is growing at a rate of 200%, with more than 50% of the Fortune 500 companies already using it. Owing to stellar growth in these areas, Microsoft has raised its capex guidance from $5.6 billion to $6.5 billion in 2014. The increased capex will go towards ramping up cloud services. Read more.
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