This Wireless Stock Is Ready for a Rebound – Buy It Now

Shah Gilani|August 29, 2023

When you’re evaluating stocks to buy, and you see the chart heading south, it’s not always doom and gloom. In fact, some of my favorite opportunities come from buying beaten-up stocks that I’m confident are going to rebound, especially if they’re solid companies with good balance sheets and a large market share in their field. Stocks like that can suffer performance-wise because investors find them boring, but they often do provide reliable gains over time.

Here’s the thing, though – those gains are usually gradual, taking years to realize fully. Which means that to get the most out of that kind of investment, you want to pair strong dividend yields with appreciation potential, so you get paid to hold onto the stock while you’re waiting for it to move higher.

Well, I’ve got the perfect pick that fits right into this particular scenario – a communications firm that’s a vital provider of wireless networking capability here in the United States. Investors often sleep on it, but it’s a consistent workhorse of a company, boasting a $144 billion market cap and a 15.58% profit margin on $135 billion of trailing 12-month revenue.

It’s trading at a huge discount right now, and has seen some pain this year, down about -14% year-to-date. But I think it could very well double in the next four years, and while it does, you’ll be enjoying a great yield at just shy of 8%, at only a 52% payout ratio with $21 billion available to common shareholders. That means there’s plenty of room to expand that dividend over time.

Check out this video for the ticker:

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As I said in yesterday’s post, communications infrastructure is one of the places you want to be, because one of the biggest growth markets right now – artificial intelligence – is going to depend on networking capacity in order to function.

But that’s not the only way to take advantage of the upcoming AI boom. There’s another little-known industry (despite the fact that we all use it every day) that’s very likely to grow at the same rate as AI will – and AI is a market that’s estimated to be worth up to $2 trillion in just seven years.

Companies in this sector are trading right now at a fraction of the cost of expensive tech firms like Microsoft and Nvidia, with many times more growth potential. You want to get in before institutional investors catch on, which is why you need to check out my full briefing on the best way to invest in AI right now.

All the details are at this link.