One Of The Best (And Safest) Stocks On The Planet Is Now Rated A “Strong Buy”

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.

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