Can Recurring Revenues Turn Trimble Into a Growth Stock?

Last year, we took a look at IBM’s pivot to act more like a high-growth tech stock. The 113-year-old company is attempting to turn back the clock and become a dominant, disruptive force in cloud computing, mainly through its $34 billion acquisition of Red Hat. Along the way, it has shed unprofitable businesses to become leaner and meaner. However, at the end of the day, IBM is still a value company whose stock is only desirable for its reliable yields as part of a well-rounded dividend growth investment strategy. That’s because it is highly unlikely that the stock will go gangbusters like a true growth stock and outperform something like the Invesco QQQ (QQQ), an ETF that tracks the performance of 100 Nasdaq-listed companies.

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This is also what makes investing in a stock like Trimble (TRMB) so tricky. Founded way back in 1978 as Trimble Navigation, the company was one of the first to develop commercial products around the new-fangled global positioning system (GPS). While navigation technology like GPS still serves as the foundation of the business, Trimble has evolved to serve a number of industries with hardware and software solutions that connect the physi

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