As the number of ChatGPT users grows, they’ll drive up traffic to the Bing search engine from Microsoft (MSFT). That usage will start flowing to Microsoft’s bottom line in a meaningful way soon, since Bing now handles web browsing “referrals” from ChatGPT.
Microsoft, of course, has a history of smart moves like this. Its Azure service is the main competitor to Amazon Web Services in cloud computing and data storage. Azure profits have powered MSFT’s dividend—up 142% in the past decade.
That’s why we love MSFT—dividend growth is where the party’s at here. And I expect its payout to accelerate again thanks to “passed-on” traffic from ChatGPT to Bing. That makes MSFT a savvy buy in September, traditionally a weak month for the stock market, with shares now 12% off their July highs.
That all said, here’s something a lot of people don’t realize: You don’t have to wait 10 years to get a big yield from Microsoft. You can grab one (a 7% payout, in fact) right now. And you can buy the stock at a “double discount,” too!
This post originally appeared at Contrarian Outlook.