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A Trio of Stocks to Ride the Internet of Things (IoT) Wave to Prosperity

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internet of things stocks - 3 Stocks to Buy as the Internet of Things (IoT) Continues to Expand

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The exuberance of the 1990s internet epoch may be but a distant memory; the new guard, including cloud computing and artificial intelligence, reigns supreme. Yet amidst the labyrinth of contemporary tech wonders, there lies a realm teeming with investment promise – the Internet of Things domain.

Many companies within this sphere produce the facilitative devices that grant users access to the digital expanse. The internet stands as a cornerstone of our modern society, and tech entities that seamlessly thread the globe with their innovations are poised for a bountiful revenue harvest. Here are some standout options that beckon consideration.

The Mighty Broadcom (AVGO)

A man on the computer with transparent cybersecurity-looking icons floating around him like an aura

Broadcom (NASDAQ:AVGO) stands tall as a semiconductor and software stalwart. Their chips act as gateways for internet access, while their software safeguards precious data. Buoyed by the surge in artificial intelligence requirements, Broadcom finds itself in a prime position to meet the escalating chip demands.

Notable fiscal success followed Broadcom’s acquisition of VMware. Marking its inaugural full quarter with VMware, the firm recorded a remarkable 34% year-over-year revenue surge. Preliminary estimates envision a staggering 40% revenue upswing year-over-year, all thanks to VMware. Should this prophecy come to fruition, fiscal 2024 could witness $50.0 billion in annual revenue.

Although artificial intelligence has undoubtedly acted as a boon, Broadcom’s trajectory is testament to prolonged triumph. Over the last year, the stock has effortlessly doubled and soared stratospherically by 344% in the past half-decade. Sporting a 48 P/E ratio, Broadcom unveils a dividend growth program that stands among the most alluring. A recent dividend ascent from $4.60 to $5.25 catapulted by 14.1% year-over-year accentuates its appeal. Indeed, Broadcom stands as a beacon among the Internet of Things (IoT) stock pantheon.

The Enigmatic Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) emerges as another monolith within the semiconductor realm, leveraging the realms of artificial intelligence. Nestled lucratively as a chip provider for myriad smartphone vendors, Qualcomm exhibits remarkable resilience, tripling in value over three years and peaking 49% in the past year. A recent slumber phase from July 2020 to October 2023 seemingly invigorated the stock.

Illuminated by a lucrative niche in generative AI, Qualcomm recently attracted acclaim from Rosenblatt. Marking a modest 25 P/E ratio and a 1.85% dividend yield, Qualcomm unveiled a delightful quarterly dividend surge from $0.75 to $0.80 per share. This $0.05 leap translates into a 6.7% year-over-year climb. Evidently, Qualcomm poses as a prime candidate among the IoT stock galaxy, poised to capture exponential growth in earnings and dividends as consumer tech acquisitions burgeon.

As smartphones, laptops, and sundry devices proliferate, Qualcomm’s chips will serve as bedrock, steering the IoT sphere towards future vistas. Unlike its semiconductor peers, Qualcomm basks in a less AI-rich glow, providing the stock with unforeseen growth potential that augurs well for savvy investors.

Revel in the Connected Future

The Soaring Success of Badger Meter (BMI)

Revolutionizing Water Solutions

Badger Meter (NYSE: BMI) may be considered a smaller fish in the corporate sea, but its market cap of nearly $5 billion speaks volumes. The company has witnessed an astounding 178% surge in the past five years, coupled with a modest 0.70% dividend yield.

Embracing IoT for Progress

Specializing in utilizing the Internet of Things (IoT) for measuring water flow, quality, and system parameters, Badger Meter has solidified its role in ensuring water safety and optimizing sustainability. The company’s innovative software solutions have struck a chord with numerous customers.

Financial Fortitude and Growth

In a noteworthy feat, Badger Meter reported a remarkable 24% year-over-year upsurge in revenue during the fourth quarter of 2023, propelling its annual revenue beyond the $700 million mark for the first time. The full-year revenue also reflected a robust 24% year-over-year increase. The earnings per share (EPS) growth was even more impressive at 40% year-over-year.

Dividend Delights and Long-Term Prospects

The company’s burgeoning profits enabled Badger Meter to boost its quarterly dividend from $0.225 per share to $0.27 per share in the past year, signaling a 20% year-over-year escalation. With a consistent track record of maintaining a substantial double-digit dividend growth rate over the years, Badger Meter appears well-positioned to continue rewarding its long-term investors.

As we ponder Badger Meter’s exceptional financial performance and technological prowess, one can’t help but marvel at the company’s ascent and its potential for sustained growth and prosperity in the realm of water solutions.

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