2 Stocks With High Cash Flow That Could Strengthen Your Portfolio

In today’s video I look at fundamentals and valuation metrics for the following stocks: Autodesk (NASDAQ:ADSK) and Broadcom (NASDAQ:AVGO). 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. 

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

View more information: https://www.fool.com/investing/2021/06/08/2-stocks-with-high-cash-flow-that-could-strengthen/

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