Would you like to invest in the best businesses you'll ever see? Want to collect the safest dividend in the world? Like the idea of a company compounding your wealth and passive income at double-digit rates while you sleep?

Microsoft Corporation (MSFT), possibly one of the best stocks to buy now, is a global technology company that provides a range of hardware and software products and services. Founded in 1975, Microsoft is now a $1.9 trillion (by market cap) technology leviathan that employs more than 160,000 people.

Microsoft has increased its dividend for 19 consecutive years already. The 10-year dividend growth rate of 14.3% offers plenty to like. And with a payout ratio of 33.3%, this dividend is extremely safe. I see plenty of dividend growth ahead. However, the stock's low yield of 0.9% does leave something to be desired.

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It's not an income play. This is instead a long-term compounder, which makes it perfect for younger investors who have time to let that compounding process play out. These dividend metrics are some of the best you'll find. I think Microsoft has the safest dividend in the world.

Now, not all of this growth was organic. Microsoft has been acquisitive. The 2016 $26.2 billion acquisition of LinkedIn is particularly notable. However, I still see this as a very impressive top-line growth for a large business like this. To compound a revenue base of almost $70 billion at more than 8% annually is herculean.

Overall, I'm highly optimistic about Microsoft's long-term prospects. That optimism is somewhat bolstered by the valuation, which isn't as high as it arguably should be. The stock's P/E ratio of 36.9 might look high at first glance. But one of the very best businesses on the planet deserves a high multiple.

I've been hearing investors complain about Microsoft's valuation for years. All the stock has done is climb higher - it's up more than 350% over the last five years - causing many investors to miss the boat.

I valued shares using a two-stage dividend discount model analysis. The two-stage analysis accounts for the current high rate of growth and the eventual slowing of that growth.

If Microsoft could manage near-15% dividend growth over the last decade, I see no reason why they can't do at least that well over the next 10+ years. The terminal dividend growth rate of 8% is at the top end of what I usually allow for. But if there's any business that earns the benefit of the doubt, it's this business. The Dividend Discount Model analysis gives me a fair value of $284.46.

Morningstar rates MSFT as a 3-star stock, with a fair value estimate of $263.00.

CFRA rates MSFT as a 5-star "STRONG BUY", with a 12-month target price of $280.00.

I came out almost exactly where CFRA is at. Averaging the three numbers out gives us a final valuation of $275.82, which would indicate the stock is possibly 11% undervalued.

Here's the bottom line, guys: Microsoft Corporation is one of the highest-quality and most impressive businesses I've ever seen. Despite their sheer size, they're growing faster than ever and getting better as they get bigger. With an extremely low payout ratio, double-digit dividend growth, 19 consecutive years of dividend raises, and the potential that shares are 11% undervalued, this dividend growth stock is perfect for investors who have time to let it magically compound their wealth and passive income for them.

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