>MSFT has been flat for so long that no one wants to buy it.
What? You call this flat? [1] The dividend payout has gone up, the price has been rising. If you call that a flat and that there is no interest in it, then I am sorry for the following remark: You have no idea about stocks and stock markets!
Let me rephrase. They aren't a growth stock anymore, so no one who wants growth stocks wants to buy it. Very recently, they have made some gains, but a lot of people remember the previous 10 years.
Microsoft has been doing fantastic over the past 5 years, especially when you take into account dividends. Just cause they were massively overvalued during the dot com bubble does not mean it has been a flat stock.
I really don't understand how you can dismiss market data that's right in front of you, it's bordering on denial.
He is right. For years market insiders considered MS a flat stock and no one wanted to recommend it. That has changed in the past 6 months and all of the sudden it has popped up on everyone's buy radar. I always thought the market was crazy especially when MS was at $18 in 2008.
Fed's target rate is 2%, and either way it's close. Also, you can be quite confident you will get that 3% return if the stock is flat. Much more than you can say for a 0.07%-return savings account.
You wouldn't want to put all your money into a 3% dividend stock, but as part of a larger diversification? Solid choice IMO.
