Portfolio Management
After the closing bell on Monday, Microsoft (MSFT) released its fourth quarter financial results. Here’s what the report means for mutual fund investors.
Inside MSFT’s Results
Earnings
Net income came in at 71 cents per share, down from 78 cents per share a year ago. On average, analysts expected to see EPS of 71 cents.
Revenue
Revenue rose to $26.47 billion from $24.52 billion last year. Analysts expected to see $26.3 billion in revenue.
Decent Risk/Reward
Despite the tumble in its share price today, Microsoft does have upside potential and is definitely a stock that investors should keep an eye on. Microsoft is always looking for the “next big thing” in technology and has managed to stay very diversified. At just 16x 2015 earnings estimates, the stock is not overly expensive.
From a yield standpoint, Microsoft could spark interest from income-focused investors. Microsoft currently offers a 2.90% dividend yield and has the potential to boost its payouts.
Mutual Funds to Watch
Investors interested in MSFT may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market Index | 1.52% |
| VFINX | Vanguard 500 Index | 1.08% |
| DODGX | Dodge & Cox | 0.60% |
The Bottom Line
The funds listed above allow investors to gain exposure to MSFT while remaining diversified. Investors interested in MSFT may also be interested in Apple (AAPL) and Google (GOOG).
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