10 Overlooked Dividend Stocks to Buy Now

2. Cognex Corporation (NASDAQ:CGNX)

Number of Hedge Fund Holders: 37

Cognex Corporation (NASDAQ:CGNX) focuses on machine vision technology, serving key sectors such as automotive, logistics, and consumer electronics. Its recent product introductions, including VisionPro Deep Learning 4.0 and the AI-driven DataMan series, showcase its dedication to innovation. The company has also strengthened its market position through strategic acquisitions like Moritex, helping to drive growth in both established and emerging markets.

In the fourth quarter of 2024, Cognex Corporation (NASDAQ:CGNX) generated $229.7 million in revenues, which grew by 17% from the same period last year. The revenue exceeded analysts’ estimates by $9 million. The company’s operating income of $31 million showed a significant growth of 142% on a YoY basis.

Cognex Corporation (NASDAQ:CGNX) remained in a solid financial position, holding $587 million in cash and investments with no outstanding debt at the end of December 2024. During the fourth quarter of 2024, the company generated $51 million in cash from operating activities and recorded $49 million in free cash flow, representing year-over-year increases of $37 million and $42 million, respectively. Cognex allocated $43 million toward share repurchases and distributed $14 million in dividends to its shareholders. The company also indicated plans to continue buying back its common stock under the current repurchase program. It currently offers a quarterly dividend of $0.08 per share and has a dividend yield of 1.22%, as of April 25.