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Ticker 

  Portfolio Details data  2/29/24

All are "buy" rated unless otherwise noted. 

Recent
Price

Div.
Yield

Exp. Div.
Growth

Risk

AVGO

Broadcom

1300.49

1.6%

9%

2

Produces digital and analog semiconductor chips used in wired and wireless communications and data storage applications. More QUOTE

IBM

International Business Machines

185.03

3.6%

5%

2

IBM is a worldwide supplier of software products and services. More QUOTE

MSFT

Microsoft

413.64

0.7%

15%

1

Major producer of software for personal computers, business applications, servers, etc. Currently in turnaround mode after losing market share to Smartphone and Tablets in recent years. More QUOTE

QCOM

Qualcomm

157.79

2.0%

0%

4

Major global producer of semiconductors and other equipment used in digital communications products. More QUOTE

RTX

RTX (Raytheon Technologies)

89.67

2.6%

11%

3

Formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation's aerospace businesses, RTX produces aerospace and defense systems for commercial and government customers. More QUOTE

SInformation believed correct, but accuracy not guaranteed. Investing in stocks and/or funds involves risk. Readers should not assume that recommendations will be profitable or will equal the performance of past recommendations. Before investing, consult with a financial advisor to determine if the stocks and/or funds described here are suitable investments for you.

Company Analysis & Recent News

 AVGO     MSFT    QCOM      RTX    TXN

3/2//24

Click here for Archives including previously sold picks

CF Payout Ratio: Annualized dividends % of  forecast fiscal year cash flow.

Broadcom  

Broadcom reports December quarter results after the bell on March 7. Analysts expect earnings of $13.03 per share vs. year-ago $10.33. The conference call is set for 5:15 pm Eastern on March 7.

In January, Broadcom increased its quarterly dividend by 14% to $5.25 per share.

In September, Broadcom's Symantec unit is partnering with Google Cloud to embed generative AI into the Symantec Security platform which will give customers a technical edge for detecting, understanding, and remediating sophisticated cyber attacks. .  

Background
Broadcom makes digital and analog semiconductor chips used in wired and wireless communications and data storage applications. Much of Broadcom’s growth has come from acquisitions. In November 2019, Broadcom acquired the enterprise security business of Symantec for $10.7 billion. In November 2018, it paid $19 billion to acquire information technology management software maker CA Technologies. In 2017, Broadcom paid $5.5 billion to acquire data storage and networking producer Brocade Communications Systems.

Quarterly Reports 

October '23: EPS (adjusted) $11.06, up 5% vs. year-ago. Total revenues up 4% to $9.295 billion. Semiconductor revenues up 3% to $7,326 million. Infrastructure software revenues up 7% to $1,969 million. Free cash flow $4,723 million vs. $4,461 million. Forecast 40% revenue growth for fiscal 2024. Modest year-over-year growth numbers, but strong guidance for next year.

July '23: EPS $10.54, up 8% vs. year-ago. Total revenues up 5% to $8.876 billion. Semiconductor revenues up 5% to $6,941 million. Infrastructure software revenues up 5% to $1,935 million. Free cash flow $4,597 million vs. $4,308 million.

April '23: EPS (adjusted) (adjusted) $10.32, up 14% vs. year-ago. Total revenues up 8% to $8.733 billion. Semiconductor revenues up 9% to $6,808 million. Infrastructure software revenues up 3% to $1,925 million. Free cash flow $4,380 million  vs. $4,158 million.

January '23: EPS (adjusted) 10.33, up 23%. Total revenues up 16% to $8.915 billion. Semiconductor revenues up 21% to $7,092 million. Infrastructure software revenues down 1% to $1,838 million. Free cash flow $3,933 million  vs. $3,385 million.

October '22: EPS (adjusted) $10.45, up 34%. Total revenues up 21% to $8.93 billion. Semiconductor revenues up 26% to $7,092 million. Infrastructure software revenues up 4% to $1,838 million. Free cash flow $4,461 million ($10.40 per share) vs. $3,453 million ($8.03/share).

July '22: EPS (adjusted) $9.73, up 40%. Total revenues up 25% to $8.464 billion. Semiconductor revenues up 32% to $6,624 million. Infrastructure software revenues up 5% to $1,840 million. Free cash flow $4,308 million ($10.01 per share) vs. $3,541 million ($8.35/share). In May, agreed to acquire software maker VMWare (VMW) in a cash-and-stock transaction that valued VMware at around $61 billion.

April '22: EPS (adjusted) $9.07, up 37%. Total revenues up 23% to $8.103 billion. Semiconductor revenues up 29% to $5,873 million. Infrastructure software revenues up 5% to $1,874 million. Free cash flow $4,158 million ($9.80 per share) vs. $3,443 million ($8.03/share).

January '22: EPS (adjusted) $8.39, up 27%. Total revenues up 16% to $7.706 billion. Semiconductor revenues up 20% to $5,873 million. Infrastructure software revenues up 5% to $1,833 million. Free cash flow $3,385 million ($7.89 per share) vs. $2,999 million ($7.01 per share). In December, dividend up 14% to $4.10 per share. Agreed to acquire network performance monitoring service provider AppNeta, based in Boston MA, for an undisclosed price.

October '21: EPS (adjusted) $7.81, up 23%. Total revenues up 15% to $4.547 billion. Semiconductor revenues up 17% to $5,643 million. Infrastructure software revenues up 8% to $1,773 million. Free cash flow $3,453 million ($8.03 per share) vs. $3,246 million ($7.62 per share). In August, dividend up 11% to $3.60.

International Business Machines 

No significant recent news.

Background
IBM, incorporated in 1911 as Computing-Tabulating-Recording Company, operates through four business segments: Software, Consulting, Infrastructure, and Financing. TThe company was formerly known as Computing-Tabulating-Recording Co.

Quarterly Reports 

December '23:  EPS (adjusted) $3.87, up 20% vs. year-ago. Revenues up 4% to $17.4 billion. Total revenues up 4% to $17.38 billion. Software revenues up 3% to $7.5 billion. Consulting revenues up 6% to $5.0 billion. Infrastructure revenues up 3% to $3.3 billion. Free cash flow $6.09 billion, up 7% vs. year-ago. Okay growth numbers from IBM.

September '23:  EPS (operating) $2.20, up 22% vs. year-ago. Total revenues up 5% to $14.8 billion. Software revenues up 8% to $6.3 billion. Consulting revenues up 6% to $5.0 billion. Infrastructure revenues down 2% to $3.3 billion. Free cash flow $1.68 billion, up 124% vs. year-ago. Announced general availability of the first models in the "watsonx" Granite model series — a collection of generative AI models to advance the infusion of generative AI into business applications and workflows.

June '23:  EPS (operating) $2.18, down 6%. Total revenues flat at $15.5 billion. Software revenues up 7% to $6.61 billion. Consulting revenues up 4% to $5.01 billion. Infrastructure revenues down 15% to $3.62 billion. Free cash flow $2.1 billion, unchanged vs. year-ago. IBM agreed acquire Apptio from Vista Equity Partners for $4.6 billion. The deal would accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments. In April, dividend up 1% to $1.66.  

March '23: EPS (adjusted) $1.36, down $0.04. Total revenues flat at $14.3 billion. Software revenues up 3% to $5.92 billion. Consulting revenues up 3% to $4.96 billion. Infrastructure revenues down 4% to $3.1 billion. Free cash flow $1.3 billion vs. year-ago $1.2 billion.

December '22: EPS (adjusted) $3.60, up 7%. Revenues even with year-ago at $16.7 billion. Software revenues up 3% to $7.3 billion. Consulting revenues up 1% to $4.8 billion. Infrastructure revenues up 2% to $4.5 billion. Free cash flow $5.2 billion vs. year-ago 3.3 billion. IBM agreed to acquire Octo, a U.S.-based IT modernization and digital transformation services provider exclusively serving the U.S. federal government, including defense, health, and civilian agencies.

Sept. '22: EPS (adjusted) 1.81 vs. $3.52. Revenues up 6% to $14.11 billion. Software revenues up 8% to $5.8 billion. Consulting revenues up 5% to $4.7 billion. Infrastructure revenues up 15% to $3.4 billion. Free cash flow $752 million vs. year-ago 7,428 million.

June '22: EPS (adjusted) $2.31, down $0.02. Revenues up 9% to $15.54 billion. Software revenues up 6% to $6.17 billion. Consulting revenues up 10% to $4.81 billion. Infrastructure revenues up 19% to $4.24 billion. Free cash flow up 102% to $2.09 billion. In May, dividend up 0.6% to $1.65.

March '22: EPS (adjusted) $1.40, up 25% vs. year-ago. Revenues up 8% to $14.2 billion.

Microsoft    

In April, a British antitrust regulator blocked Microsoft’s $69 billion purchase of video game maker Activision Blizzard (ATVI) over worries that it would stifle competition for popular titles like Call of Duty in the cloud gaming market.

Background
Microsoft got its start in 1979 by offering software for personal computers, later expanding into commercial and gaming applications. Microsoft launched its Windows operating system in 1990, allowing it to dominate the PC industry until smartphones and tablets, powered by Apple and Google operating systems, began taking serious market share from PCs a few years ago. Microsoft was steadily losing market share until it appointed a new CEO, Satya Nadella, in February 2014. Nadella is taking Microsoft into new directions, and it has become a major player in cloud (data center based software) services.

Quarterly Reports 

December '23: EPS (adjusted) $2.93, $0.19 up 26% vs. year-ago. Total revenues up 18% to $62.0 billion. Intelligent Cloud revenues up 20% to $25.9 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 13% to $19.2 billion. Personal computing revenues up 19% to $16.9 billion. Operating cash flow $18.85 billion vs. year-ago $11.17 billion. Strong year-over-year growth numbers from Microsoft.

September '23: EPS (operating) $2.99, up 27% vs. year-ago. Total revenues up 13% to $56.5 billion. Intelligent Cloud revenues up 19% to $24.3 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 13% to $18.6 billion. Personal computing revenues up 3% to $13.7 billion. Operating cash flow $30,583 billion vs. year-ago $23,198 billion. In September, dividend up 10% to $0.75

June '23: EPS $2.69 per share, up 21%. Total revenues up 8% to $56.2 billion. Intelligent Cloud revenues up 15% to $24.0 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 10% to $18.3 billion. Personal computing revenues down 4% to $13.9 billion. Operating cash flow $28,770 billion vs. year-ago $24,629 billion. Microsoft said it was partnering with Mercedes-Benz to test in-car ChatGPT.  

March '23: EPS (adjusted) $2.45, up 10% vs. year-ago. Revenues up 7% to $52.86 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 11% to $17.5 billion. Intelligent Cloud revenues up 16% to $22.1 billion. Personal computing revenues down 9% to $13.3 billion. Operating cash flow $24.441 billion vs. year-ago $25.386 billion.

December '22: EPS (adjusted) $2.32, down 5%. Revenues up 2% to $52.7 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 7% to $17.0 billion. Intelligent Cloud revenues up 18% to $21.5 billion. Personal computing revenues down 19% to $14.2 billion. Operating cash flow $11.173 billion vs. year-ago $14.480 billion.

Sept. '22: EPS $2.35, down 13%. Revenues up 11% to $50.1 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 9% to $16.5 billion. Intelligent Cloud revenues up 20% to $20.3 billion. Personal computing revenues flat at $13.3 billion. In September, dividend up 10% to $0.68.

June '22: EPS (adjusted) $2.23, up 23%. Revenues up 12% to $51.9 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 13% to $16.6 billion. Intelligent Cloud revenues up 20% to $20.9 billion. Personal computing revenues up 2% to $14.4 billion.

March '22: EPS (adjusted) $2.22, up 14%. Revenues up 18% to $49.36 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 17% to $15.8 billion. Intelligent Cloud revenues up 26% to $19.1 billion. Personal computing revenues up 11% to $14.5 billion. Slower vs. previous quarters, but still okay growth numbers.. Agreed to pay $69 billion ($95/share) to acquire game maker Activision (ATVI).   

December '21: EPS $2.48, up 22%. Revenues up 20% to $51.7 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues up 19% to $15.9 billion. Intelligent Cloud revenues up 26% to $18.3 billion. Personal computing revenues up 15% to $17.5 billion. In October, dividend up 11% to $0.62.

September '21: EPS (adjusted) $2.27, up 25%. Revenues up 22% to $45.3 billion. Productivity and Business Process (MS Office, LinkedIn, Dynamics) revenues down 25% to $15.0 billion. Intelligent Cloud revenues up 31% to $17.0 billion. Personal computing revenues up 12% vs. year-ago to $13.3 billion.

Qualcomm

No significant recent news.

Background
A major global producer of semiconductors and other equipment used in digital communications products. Qualcomm was involved in a major patent disagreement with Apple, its biggest customer that lasted around a year. That issue was settled in April 2019, and Apple and Qualcomm’s are again doing business together.

Quarterly Reports 

December '23:  EPS (adjusted) $2.75, up 16% vs. year-ago. Revenues up 5% to $9.935 billion. Handsets revenue up 16% to $6.69 billion. Automotive revenues up 31% to $598 million. Internet of things (IoT) revenues down 32% to 1.14 billion. Mixed but mostly strong year-over-year growth numbers from Qualcomm.

September '23:  EPS (adjusted) $2.02, down 35% vs. year-ago. Revenues down 24% to $8.63 billion. Handsets revenue down 27% to $5.46 billion. Automotive revenues up 15% to $535 million. Internet of things (IoT) revenues down 31% to 1.39 billion. Agreed with Apple to supply Snapdragon 5G Modem‑RF Systems for Smartphone launches in 2024, 2025 and 2026.

June '23: EPS (adjusted) $1.87, down 37%. Revenues down 23% to $8.45 billion. Handsets revenue down 25% to $5.26 billion. Automotive revenues up 34% to $434 million. Internet of things (IoT) revenues down 24% to 1.49 billion. In April, dividend up 7% to $0.80 per share.  

March '23: EPS (adjusted) $2.15, down. Revenues down 17% to $9.275 billion. Handsets revenue down 17% to $6.11 billion. Automotive revenues up 20% to $467 million. Internet of things (IoT) revenues down 24% to 1,390 million.

December '22: EPS $2.37, down 27%. Revenues down 12% to $9.46 billion. Handsets revenue down 18% to $5.75 billion. Automotive revenues up 57% to $456 million. Internet of things (IoT) revenues up 7% to 1,682 million.

Sept. '22: EPS $3.13 per share, up 23% vs. year-ago. Revenues up 22% to $11.40 billion. Handsets revenue up 40% to $6.57 billion. RF front-end revenues down 20% to $992 million. Automotive revenues up 58% to $427 million. Internet of things (IoT) revenues up 24% to 1,915 million.

June '22: EPS (adjusted) $2.96, up 54%. Revenues up 37% to $10.928 billion. Handsets revenue up 59% to $6,149 million. RF front-end revenues up 9% to $1,046 million. Automotive revenues up 38% to $350 million. Internet of things (IoT) revenues up 31% to 1,833 million. Acquired Cellwize Wireless Technologies, a mobile network automation and management systems provider. In April, dividend up 10% to $0.75.

March '22: EPS $3.21, up 69%. Revenues up 41% to $11.158 billion. Handsets revenue up 56% to $6,325 million. RF front-end revenues up 28% to $1,160 million. Automotive revenues up 41% to $339 million. Internet of things (IoT) revenues up 61% to 1,724 million. Announced a computing system for autonomous vehicles, Snapdragon Ride, designed to handle everything from lane controls to full self-driving, plans to have Snapdragon on the road by 2023. For the first time since 2004, Qualcomm failed to raise its March quarterly dividend. Instead, Qualcomm declared a $0.68 per share March payout, even with year-ago. Last year, Qualcomm raised its March payout by 9%.

December '21: EPS (adjusted) $3.23, up 49%. Revenues up 30% to $10.70 billion. Handsets revenue up 42% to $5,983 million. RF front-end revenues up 7% to $1,132 million. Automotive revenues up 21% to $256 million. Internet of things (IoT) revenues up 41% to 1,476 million.

September '21: EPS (adjusted) $2.55, up 76%. Revenues (adjusted) up 43% to $9,321 million. Handsets revenue up 56% to $4,686 million. RF front-end revenues up 45% to $1,237 million. Automotive revenues up 44% to $270 million. Internet of things (IoT) revenues up 66% to 1,540 million. Qualcomm won dismissal of a lawsuit charging saying that its royalty practices increased Smartphone costs to consumers. 

RTX  (Raytheon Technologies)

No significant recent news.

In September, RTX said "600 to 700 geared turbofan engines will have to be removed from planes for quality checks."

In August, Raytheon changed its name to "RTX". Ticker symbol remained "RTX". 

In June, Raytheon said its Pratt & Whitney unit found a manufacturing defect. RTX lowered its full-year guidance for free cash flow to $4.3 billion from approximately $4.8 billion

Background
Formed in April 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, Raytheon produces aerospace and defense systems for commercial and government customers. Operating divisions include Collins Aerospace Systems (aero structures, avionics, interiors, mechanical systems, mission systems, and power controls), Pratt and Whitney (Saircraft engines and auxiliary power systems), Raytheon Intelligence and Space (sensors, training, and cyber and software solutions), and Raytheon Missiles and Defense (systems to detect, track, and engage threats).

Quarterly Reports 

December '23: EPS (adjusted) $1.29, up 2% vs. year-ago. Total Revenues (adjusted) up 2% to $19.8 billion. Collins Aerospace revenues up 14% to $7,120 million, Pratt & Whitney revenues up 14% to $6,439 million, and Raytheon Sales up 3% to $6,8862 million. Free cash flow $3.9 billion vs. year-ago $3.8 billion. Expects FY 2024 EPS of $5.25 - $5.40 vs. $5.06. Disappointing year-over-year growth numbers from RTX.

September '23: EPS (adjusted) $1.25, up 3% vs. year-ago. Total Revenues (adjusted) up 12% to $19.0 billion. Collins Aerospace revenues up 17% to $6,686 million, Pratt & Whitney revenues up 18% to $6,327 million, and Raytheon Sales up 3% to $6,472 million. Free cash flow $2.75 billion vs. year-ago $263 million. Mostly strong year-over-year growth numbers from RTX.

June '23: EPS $1.29, up 11%. Revenues up 12% to $18.3 billion. Collins Aerospace revenues up 17% to $5,850 million, Pratt & Whitney revenues up 15% to $5,701 million, Raytheon Intelligence and Space revenues up 2% to $3,655 million, and Raytheon Missiles and Defense revenues up 13% to $4,000 million. Free cash flow $193 million vs. +$37 million. In April, dividend up 7% to $0.59.

March '23: EPS (adjusted) $1.22, up 6%. Revenues up 10% to $x17.2 billion. Collins Aerospace revenues up 16% to $5,581 million, Pratt & Whitney revenues up 15% to $5,230 million, Raytheon Intelligence and Space revenues even with year-ago at $3,572 million, and Raytheon Missiles and Defense revenues up 4% to $3,671 million. Free cash flow -$1.38 billion vs. +$37 million.

December '22: EPS (adjusted) $1.27, up 18%. Revenues up 6% to $18.1 billion. Collins Aerospace revenues up 15% to $5,662 million, Pratt & Whitney revenues up 10% to $5,652 million, Raytheon Intelligence and Space revenues down 8% to $3,544 million, and Raytheon Missiles and Defense revenues up 6% to $4,100 million. Free cash flow $3.77 billion vs. $2.21 billion.

Sept '22: EPS (adjusted) $1.21, down 4%. Revenues up 5% to $17.0 billion. Collins Aerospace revenues up 11% to $5,100 million, Pratt & Whitney revenues up 14% to $5,380 million, Raytheon Intelligence and Space revenues down 3% to $3,626 million, and Raytheon Missiles and Defense revenues down 6% to $3,678 million. Free cash flow $263 million vs. $1,499 million.

June '22: EPS (adjusted) $1.16, up 13%. Revenues up 3% to $16.31 billion. Collins Aerospace revenues up 10% to $5,011 million, Pratt & Whitney revenues up 16% to $4,969 million, Raytheon Intelligence and Space revenues down 5% to $3,572 million, and Raytheon Missiles and Defense revenues down 6% to $3,570 million. Free cash flow $807 million vs. year-ago $966 million. In April, dividend up 8%.

March '22: EPS (adjusted) $1.15, up 28%. Revenues up 3% to $15.7 billion. Collins Aerospace revenues up 10% to $4,824 million, Pratt & Whitney revenues up 12% to $4,529 million, Raytheon Intelligence and Space revenues down 5% to $3,572 million, and Raytheon Missiles and Defense revenues down 7% to $3,527 million. Free cash flow $37 million vs. $336 million.

December '21: EPS (adjusted) $1.08, up 46%. Revenues up 4% to $17.04 billion. Collins Aerospace revenues up 13% to $4,942 million, Pratt & Whitney revenues up 15% to $5,115 million, Raytheon Intelligence and Space revenues down 2% to $3,870 million, and Raytheon Missiles and Defense revenues down 8%% to $3,859 million. Free cash flow $2,207 million ($1.47 per share) vs. $747 million ($0.49 per share). Expects 8% revenue growth and 10% EPS growth for year 2022.

September '21: EPS (adjusted) $1.26, up 125%. Revenues up 8% to $16.2 billion. Collins Aerospace revenues up 7% to $4,592 million, Pratt & Whitney revenues up 35% to $4,725 million, Raytheon Intelligence and Space revenues flat at $3,740 million, and Raytheon Missiles and Defense revenues up 5% to $3,902 million. Free cash flow $1,499 million ($1.00 per share) vs. $1,233 million ($0.81 per share). Agreed to acquire privately-held advanced advanced space electronics manufacturer SEAKR Engineering for an undisclosed sum. SEAKR, founded in 1981, has delivered more than 300 flight units with a 100% on-orbit success rate.

Texas Instruments   

Sold 12/1/2023