How Microsoft's Products Keep Users Coming Back

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Wide Moat Dividend Stocks to Invest in.

Microsoft Corporation (NASDAQ:MSFT) has a diverse range of technology operations, including cloud computing, Microsoft Office 365, gaming, LinkedIn, search, advertising, and more.

A key advantage for Microsoft Corporation (NASDAQ:MSFT) is that many of these areas involve services rather than physical products, making them less vulnerable to tariffs. This has likely contributed to the company’s strong showing in 2025. The stock has surged by over 17% since the start of the year.

However, a major driver of its success is Azure, which is part of its cloud segment. Azure plays a central role in powering Microsoft Corporation (NASDAQ:MSFT)’s artificial intelligence capabilities and overall tech strategy.

Microsoft Corporation (NASDAQ:MSFT) retains its users by prioritizing customer needs, fostering innovation, and delivering strong, consistent user experiences across its wide range of products. The company uses approaches such as tailoring solutions to individual needs, applying design thinking in product creation, and regularly updating its offerings based on user feedback. By serving both individual consumers and large businesses, Microsoft strengthens its competitive edge through a broad and differentiated product lineup.

Microsoft Corporation (NASDAQ:MSFT) offers a quarterly dividend of $0.83 per share and has a dividend yield of 0.68%, as of June 24. The company has raised its dividends for 20 consecutive years.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure. None.