Badger Meter (BMI): An Under-the-Radar Dividend Stock Worth Watching

Badger Meter, Inc. (NYSE:BMI) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy.

Badger Meter, Inc. (NYSE:BMI) is recognized as a top-tier company in the market, known for its strong operational performance and potential for expanding profit margins in a fundamentally appealing industry. The company is well-positioned to benefit from long-term shifts toward greater resource efficiency, thanks to its emphasis on Advanced Metering Infrastructure (AMI) and Software as a Service (SaaS). These areas are becoming more important as regulations tighten and sustainability becomes a global priority.

In its recently announced earnings, Badger Meter, Inc. (NYSE:BMI) reported revenue of $238 million, which showed a nearly 10% growth from the same period last year. Operating earnings rose by 8% from the same period last year, reaching $44.9 million. However, operating profit margins slightly declined to 18.8% from 19.2% a year earlier. Diluted earnings per share (EPS) also saw a 4% increase, coming in at $1.17 compared to $1.12 in the previous year’s quarter.

Badger Meter, Inc. (NYSE:BMI) generated $44.5 million in operating cash flow, up 22% from the prior-year period. The company ended the quarter with $165.2 million available in cash and cash equivalents. It offers a quarterly dividend of $0.34 per share and has a dividend yield of 0.71%, as recorded on July 23. BMI is among the best stocks on our dividend champions list, as the company has grown its payouts for 32 years straight.

While we acknowledge the potential of BMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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