The internet boom of the 1990s is long over. Nowadays, people view innovations on the internet like cloud computing and artificial intelligence as the new “boom” opportunities. However, investors can still benefit greatly from getting exposure to the Internet of Things stocks.
These corporations produce devices that help people access the web. The internet is a fundamental part of modern society, and many tech firms are positioned to generate steady revenue from global connections. These are some of the top picks to consider.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a semiconductor and software company. Its chips go into devices that let people access the internet while its software keeps sensitive data safe. Broadcom is also enjoying tailwinds from artificial intelligence needs, which have increased the demand for its chips.
Broadcom’s recent acquisition of VMware has also bolstered the company’s finances. Broadcom’s first full quarter with VMware featured 34% year-over-year revenue growth. The firm’s guidance suggests revenue will increase by 40% year-over-year thanks to VMware. Achieving this growth rate would result in $50.0 billion in fiscal 2024 annual revenue.
Artificial intelligence has certainly helped the stock, but it’s been a long-term winner. The stock has more than doubled over the past year and is up by 344% over the past five years. The stock trades at a 48 P/E ratio and offers one of the best dividend growth programs. The firm recently hiked its dividend from $4.60 to $5.25 which is a 14.1% year-over-year increase. It’s one of those Internet of Things (IoT) stocks to consider.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is another semiconductor giant that is tapping into artificial intelligence. The company also supplies chips for many smartphone companies. The stock has more than tripled over the past three years and is up by 49% over the past year. The stock is coming back to life after being flat from July 2020 to October 2023.
The company has great potential in generative AI and recently earned an upgrade from Rosenblatt. The stock only trades at a 25 P/E ratio and has a 1.85% dividend yield. Qualcomm recently raised its quarterly dividend from $0.75 to $0.80 per share. The $0.05 jump represents a 6.7% year-over-year increase. All in all, it’s one of those Internet of Things (IoT) stocks to buy.
Qualcomm will continue to grow its earnings and dividends as more people buy smartphones, laptops, and other devices. The company’s chips are essential and will power the Internet of Things for many years to come. Unlike most semiconductor stocks, Qualcomm stock hasn’t benefitted as much from AI tailwinds, which can give it some extra upside.
Badger Meter (BMI)
Badger Meter (NYSE:BMI) is a smaller corporation with a market cap just shy of $5 billion. Despite the relatively low market cap, gains have been massive. The water solutions company is up by 178% over the past five years and offers a 0.70% dividend yield.
The firm uses the Internet of Things to measure water flow, quality, and other system parameters. The company’s software helps customers ensure water is safe and optimizes the sustainability of the world’s most precious resource.
Badger Meter has an important purpose, and many customers have taken notice of the company’s effective software. Revenue increased by 24% year-over-year in the fourth quarter of 2023. This growth rate resulted in the company exceeding $700 million in annual revenue for the first time. Full year revenue was also up by 24% year-over-year.
EPS growth was even better at 40% year-over-year. Improving profits helped the company hike its quarterly dividend from $0.225 per share to $0.27 per share last year. That’s a 20% year-over-year increase. Badger Meter has maintained a tremendous double-digit dividend growth rate for several years and looks poised to reward long-term investors.
On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.