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How to Buy Microsoft Stock (MSFT)
How to Buy Microsoft Stock (MSFT)
Before you buy Microsoft stock, research its characteristics and evaluate how MSFT fits into your financial plan.Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
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As one of the largest software companies in the world, Microsoft can feel ubiquitous. And even though Microsoft is already a global company, it's still able to post strong growth in personal computers, electronics, software and cloud services. Here’s what to consider about the merits, risks and rewards of buying Microsoft stock. Brokerage firms Learn more Learn moreon Charles Schwab's website
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How to buy Microsoft stock
You can buy Microsoft stock through a brokerage account. You'll need to add money to the account and then search within the brokerage's platform using the symbol "MSFT." You can also buy Microsoft stock through Microsoft's direct stock purchase plan. » Check out the best brokerage accounts for stock trading » Check out Here's more information on how to buy Microsoft stock.1. Learn about the fundamentals of Microsoft stock
You may be familiar with Microsoft as a customer. Even so, revisiting a company with fresh eyes as a potential investor can help you evaluate whether, how much and when to invest. Annual and quarterly reports offer insight into a company's operations, financial results, sources of income and expenses. Investors can also evaluate Microsoft’s merits based on characteristics such as: Competitive analysis: How does Microsoft size up against its competitors such as Apple, Meta, Intel, Google and Amazon? Competitive analysis: Dividend yield rate: The value of Microsoft dividends relative to its stock price. Dividend yield rate: Earnings: A measure of net income, showing the profitability of a company. Earnings: Price-to-earnings ratio (called a PE ratio): How Microsoft’s stock price compares with its earnings per share (called EPS). Price-to-earnings ratio Revenue: The value of Microsoft’s goods and services sold during a period. Revenue:2. Consider Microsoft in the context of your investment plan
Just because you can buy something doesn’t mean you should. Whether to buy Microsoft stock is a question of your financial goals, timeline and the other assets in your portfolio. Before you begin, check in on your cash reserves. Do you have three to six months of living expenses set aside for an emergency? Do you have any high-interest debt, such as credit card debt, you're trying to pay off? If you've checked the boxes above, you may be ready for the next step. Thoughtful investing involves diversification and proper asset allocation. As a general rule of thumb, individual stocks should make up no more than 10% of your financial portfolio. Consider: What types of assets do you have in your portfolio? And how many tech stocks do you currently own? Look into the index funds you own to see if any of them contain Microsoft and decide if you want additional exposure by investing in Microsoft directly. ? Nerdy Tip Some stocks and funds have intimidatingly-high share prices — but certain brokerages allow you to buy less than a full share. Here’s our list of the best brokers for fractional shares.3. Know your investment timeline
Time is an important factor in your investment plan. Take into consideration whether you may need the money you’re using to buy Microsoft stock for a more immediate need, such as a home purchase or college tuition. If you're investing in the stock market, it's best to consider it a long-term investment. If you won't need the cash for, say, five years, you can weather any stock market turmoil that may occur in that period. But if you'll need that cash for short-term goals, consider options like high yield savings, bond funds or money market accounts. The dollar-cost averaging approach is an investing strategy in which investors regularly invest over time. While they’ll inevitably buy while prices are high, they’ll also buy when prices are low, averaging out the risk faced in the market. » Learn more about the best short-term investment accounts for money you need in five years or less. » Learn moreEarn 3.71% APY by investing in U.S. Treasury Bills*
3.71*Rate when held to maturity. Rate shown is subject to price fluctuations.