Must-See Charts: Microsoft Investors Still Waiting on a Dividend Increase

 

NEW YORK (TheStreet) -- Investors expect software giant Microsoft (MSFT) to hike its dividend in the next quarter from the current 31 cents a share. With a dividend yield of 2.7% the stock is an investment favorite for those looking for an income stream.

Microsoft's technical charts show a pending dividend increase is already factored into the price of the stock, which is trading around $45.70 Thursday.

Shares of Microsoft have slipped 1.7% so far in 2015 versus a modest gain of 0.8% for the Dow Jones Industrial Average. Microsoft is also a major component of the Nasdaq Composite, which set an all-time intraday high of 5,164.36 on Wednesday. Microsoft's all-time high is $59.96 set in December 1999.

Here's the daily chart for Microsoft.


Courtesy of MetaStock Xenith

Microsoft has had two major price gaps so far in 2015. After setting a multiyear intraday high of $50.04 on Nov. 14 the stock gapped below its 200-day simple moving average then at $44.36 on Jan. 27 following a negative reaction to earnings released after the close on Jan. 26. This price gap from a close of $47.01 on Jan. 26 to the open of $42.95 was a hit of 8.6%.

Then on April 24 there was a price gap back above the 200-day simple moving average then at $44.91 following a positive reaction to earnings released after the close on April 23. This gap higher from a close of $43.34 on April 23 to the open of $45.66 was a spike of 5.4%.

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