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2 Stocks With High Cash Flow That Could Strengthen Your Portfolio

By Jose Najarro - Jun 8, 2021 at 10:30AM

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One is a software giant, and the other is a semiconductor company that pays a hefty dividend.

In today's video I look at fundamentals and valuation metrics for the following stocks: Autodesk (ADSK 1.28%) and Broadcom (AVGO 0.90%). In the trailing 12 months (TTM), the cash flow from operations for both these stocks is over 30% of revenue. Below I share a few more reasons to add them to your watch list. 

Three reasons to add Autodesk to your watch list

  1. Autodesk reported 12% year-over-year (YOY) revenue growth for the first quarter of 2021, driven by growth in all its product segments and growth in all geographic regions.
  2. Autodesk has solid fundamentals for its TTM. It has positive cash flow from operations and positive earnings. 
  3. Autodesk is attempting to increase its design and modeling software solutions. In the past three months, it has completed one acquisition, and it recently announced a proposal to acquire Altium Limited. Altium has reportedly rejected the offer, and investors are waiting to see if a new bid will be made.

Three reasons to add Broadcom to your watch list

  1. Broadcom provides solutions for numerous high-growth markets like data centers, enterprise security, wireless, and much more.
  2. Broadcom has solid fundamentals for its TTM. It has positive cash flow from operations and positive earnings.
  3. Between the fiscal years of 2016 and 2020, Broadcom's dividend has seen a compounded annual growth rate of 49%. It currently pays a dividend yield of roughly 3.1%. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of June 7, 2021. The video was published on June 7, 2021. 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Autodesk. The Motley Fool recommends Broadcom Ltd. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Autodesk, Inc. Stock Quote
Autodesk, Inc.
$229.21 (1.28%) $2.89
Broadcom Limited Stock Quote
Broadcom Limited
$555.35 (0.90%) $4.94

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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