5 low-risk, big-dividend internet of things stocks to buy
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5 Low-Risk, Big-Dividend Internet of Things Stocks to Buy
Image source: Cisco.
The Internet of Things will dramatically increase the amount of data that is transmitted. AT&T’s position in wireless networks means that it will play a big role in enabling this new information boom and could give it a big edge in the IoT-services space.
Image source: AT&T.
AT&T
5G networks will be essential for facilitating the increase in device connectivity, and AT&T anticipates that its next-gen network will be between 10 and 100 times faster than current 4G LTE technology. The company is also gearing up to provide services for smart cities and connected cars.
Image source: Getty Images.
AT&T dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
Over
Last 5
Years
Free
Cash
Flow
(TTM)
5.2% 32 92% 11.4% $15.8
billion
AT&T trades at roughly 13 times forward earnings estimates.
Like AT&T, Verizon looks to be one of the leading providers of high-capacity, low-latency 5G networks. The company also operates its own IoT connectivity and management platform, ThingSpace.
Image source: Verizon.
Verizon
.
Image source: Getty Images.
Internet of Things services currently make up a relatively small portion of Verizon’s sales, but the category is ramping up quickly, and the company is making acquisitions in spaces like connected cars and smart-city technologies to rapidly build its position in IoT.
Verizon dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
Over
Last 5
Years
Free
Cash
Flow
(TTM)
4.8% 10 61% 12.1% $2.4
billion
Verizon trades at roughly 13 times forward earnings estimates.
Qualcomm’s expertise in mobile-baseband chips and high-performance, low-power-consumption processors suggest that it will be a leading component provider for IoT devices.
Image source: Qualcomm.
Qualcomm
Qualcomm’s chips will be found in next-gen mobile devices, data centers, 5G modems, wearables, and smart home technologies. The company’s pending purchase of NXP Semiconductor also puts it in position to be the leader in chips for connected cars.
Image source: Qualcomm.
Qualcomm dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
Over
Last 5
Years
Free
Cash
Flow
(TTM)
4.4% 14 62.1% 128% $3.8
billion
Qualcomm trades at roughly 13 times forward earnings estimates.
Cisco anticipates that there will be 50 billion Internet of Things devices in operation by 2020 -- up from 25 billion in 2015. As the leading provider of networking hardware, the company is in position to benefit from connectivity growth.
Image source: Cisco.
Cisco
Cisco is also focused on building up its IoT service offerings and is building platforms for device connectivity, management, and security.
Image source: Getty Images.
Cisco dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
Over
Last 5
Years
Free
Cash
Flow
(TTM)
3.7% 6 54% 107% $12.9
billion
Cisco trades at roughly 13 times forward earnings estimates.
With Intel retreating from mobile and its PC segment in decline, IoT stands out as one of the company’s biggest growth opportunities and has been its fastest growing segment in the last two fiscal years.
Image source: Intel.
Intel
Intel also looks to be a big player in the connected-car space, having recently purchased machine-vision company Mobileye in a $15.3 billion deal.
Image source: Getty Images.
Intel dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
Over
Last 5
Years
Free
Cash
Flow
(TTM)
3.2% 1 36% 21.1% $11.8
billion
Intel trades at roughly 12 times forward earnings estimates.
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