If You Invested $1K In Microsoft 5 Years Ago, Here's How Much You'd Have Today

There’s no such thing as a sure thing when investing in stocks. But some companies are safer than others, with Microsoft Corp. MSFT somewhere near the top of the list. 

In this article, you’ll learn more about Microsoft’s history along with how much money you could have made along the way. 

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In 1975, visionaries Bill Gates and Paul Allen cofounded Microsoft with the dream of putting a computer on every desk and in every home. Their first project was the development of the BASIC interpreter for the Micro Instrumentation and Telemetry Systems (MITS) Altair 8800, one of the earliest personal computers. 

Microsoft's big breakthrough came in 1981 when it partnered with IBM to provide an operating system (OS) for its first personal computer. While initially presenting IBM with an OS called Quick and Dirty Operating System (QDOS) it had acquired, Microsoft soon developed it into what became known as MS-DOS. The venture paved the way for Microsoft’s dominance in the computer OS market.

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By the mid-1980s, Microsoft launched Windows, a graphical extension for MS-DOS. It was Windows 3.0 and its subsequent version, Windows 3.1, that garnered significant success. The 1990s saw Microsoft’s rapid expansion into various sectors: enterprise software with products like SQL Server and Exchange, and into the web browser market with Internet Explorer. This era also marked the company’s foray into the stock market. 

Debuting in 1986, Microsoft’s initial public offering (IPO) was priced at $21 per share, but by the end of the trading day, it had risen to $27.75. The stock’s performance and multiple splits in subsequent years turned early investors and numerous Microsoft employees into millionaires, showcasing the immense growth potential of tech stocks.

Diversification and Transformation in the 21st Century

Entering the 21st century, Microsoft faced competition on multiple fronts, from Apple’s resurgence to the rise of Google. The company continued its diversification strategy, moving into gaming with the Xbox, enterprise services with Azure cloud computing and hardware with the Surface lineup. 

Under the leadership of Satya Nadella starting in 2014, Microsoft embraced a “cloud-first, mobile-first” vision, emphasizing innovation and collaboration. This pivot reenergized Microsoft, and MSFT stock reflected the company’s renewed vigor. 

By 2020, Microsoft became one of the few companies to reach a market capitalization of $1 trillion, attesting to its enduring relevance and ability to adapt to the ever-evolving tech landscape.

Investing in MSFT

It goes without saying that a $1,000 investment in MSFT at the time of its IPO would have turned you into a millionaire by now. But you don’t have to go back that far to realize substantial gains.

For example, if you invested $1,000 five years ago — at a price per share of $112.13 — you’d have 8.9 shares. While that’s not a large number, the stock is trading at $316.56. Your initial investment would now be worth $2,817.38.

If that return isn’t enough to get you excited, you should also consider the fact that the stock has paid a dividend every quarter since 2018. The annual dividend now is $2.72.

You may have missed out on the meteoric rise of MSFT stock in its early days, but there are other opportunities to consider. If you want to get in on the next big opportunity before it explodes, check out the many offerings on StartEngine. With this platform, you can invest today in tomorrow’s biggest corporate stars. 

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