<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Microsoft's stock has been struggling of late, but its decline has been fairly mild over the past year.</li><li>Unlike many tech stocks, it pays a dividend, which can be valuable for retirees.</li><li>Its valuation is modest, but that doesn't guarantee the stock is safe from corrections.</li><li>10 stocks we like better than Microsoft ›</li></ul>If you're in retirement, your investing priorities are going to be very different from those of someone with 10-plus years to go before they stop working. Preserving capital while generating stable, recurring cash flow is likely to be key. This means that keeping your portfolio's risk as low as possible will be crucial.Normally, that might mean steering away from tech stocks. But what about Microsoft (NASDAQ: MSFT)? Not only is the tech giant strong financially, but its valuation has become more attractive of late, and it also pays a dividend. Could this be a suitable stock to put in your retirement portfolio?Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDcxMS9wZXJzb24tdXNpbmctYS1jb21wdXRlci13aXRoLWFuLW92ZXJsYXktb2YtY2hhcnRzLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDcxMS9wZXJzb24tdXNpbmctYS1jb21wdXRlci13aXRoLWFuLW92ZXJsYXktb2YtY2hhcnRzLmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>Why retirees might like Microsoft's stock</h2>Microsoft is a big name in tech, and with people and businesses all over the world using its software, it generates plenty of recurring income. And the business has continued to grow, enhancing its products and services with artificial intelligence (AI), which has created upselling opportunities.For retirees, the stability that Microsoft's business offers makes it a particularly compelling option in the tech sector. And while it's been struggling this year, it's still down a fairly modest 7% over the past 12 months. It hasn't gone on a full-blown decline due to AI fears. Compared to other tech stocks, Microsoft is relatively stable. It also offers a dividend that yields 0.9%. It's not massive, but it can still provide retirees with valuable recurring cash flow while giving them exposure to AI.<h2>Is Microsoft's stock suitable for retirees?</h2>While Microsoft is a fairly big and safe business to invest in, I don't think it's appropriate for retirees. Its valuation is relatively low right now, trading at 25 times trailing earnings, but that is by no means a guarantee it can't go lower if there is a rampant sell-off in tech or if investors grow concerned about the payoff from AI investments.Even if you think Microsoft's risk is low and the probability is high that it'll recover from a downturn, it could take multiple years for the market to recover from a crash, and for retirees, that may not be a viable option. If you want exposure to tech, then Microsoft is definitely a great low-risk stock to own in the sector. But with many other dividend stocks to choose from that pay higher yields than Microsoft and that have less exposure to tech, if you're a retiree, you may still be better off looking elsewhere.<h2>Should you buy stock in Microsoft right now?</h2> Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Microsoft's stock has seen a mild decline over the past year but offers a dividend, making it appealing for retirees. While its valuation is modest, concerns about potential corrections remain. Although Microsoft is a stable tech option, retirees may prefer higher-yield dividend stocks with less tech exposure. Analysts suggest considering other stocks over Microsoft for better returns. The Motley Fool's Stock Advisor highlights 10 stocks they believe are better investments right now.

Does Microsoft's Stock Belong in Your Retirement Portfolio?