Where to invest $10,000 in October?

With broader markets hovering near all-time highs, investors may wait for a decline rather than gain additional exposure to companies trading at overheated valuations. However, it is impossible to time the market, so it makes more sense to consistently build positions in quality companies over time rather than waiting for a broader market correction. So let's see where you can invest $10,000 in October 2024.

Broadcom (NASDAQ:AVGO) is one of the largest companies in the world with a market value of $850 billion. The semiconductor giant reported revenue of $13.1 billion in the third quarter of fiscal 2024 (ended July), up 44% year over year. The revenue growth was driven by strong AI (artificial intelligence) sales, the VMware acquisition and others Stabilizing non-AI semiconductor sales.

Broadcom's infrastructure software segment, which includes VMware, reported revenue of $5.8 billion, up 200% from a year ago due to a $3.8 billion contribution from VMware . Broadcom recently promoted the VMware Cloud Foundation (VCF), a complete software stack that virtualizes an entire data center and creates a private cloud environment for businesses.

In the third quarter, Broadcom booked 15 million CPU costs for VCF, representing more than 80% of total VMware products booked. This represents an annual booking value of $2.5 billion, up 32% year over year.

Broadcom originally expected to achieve adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $8.5 billion within three years of acquiring VMware. However, it is on track to meet or even exceed this target in fiscal year 2025.

Next, Broadcom's networking business grew revenue 43% to $4 billion and accounted for 55% of semiconductor sales. The segment was driven by solid demand from hyperscalers for AI networks and custom AI accelerators.

Broadcom is positioned to benefit from strong AI-related tailwinds. In the fourth quarter, AI revenue is expected to increase 10% sequentially to $3.5 billion, while total AI revenue is expected to be $12 billion in fiscal 2024.

AVGO stock has already returned more than 3,000% to shareholders over the last decade, adjusted for dividends. Today, the company trades at 28 times expected earnings, which isn't all that expensive given its growth projections.

Enghouse shares

A Canadian technology stock, Enghouse (TSX:ENGH) provides business-focused software solutions worldwide. It provides customer interaction software and services to facilitate remote work, improve customer service, and manage customer communications via voice, email, web chats, text, and video.

In the third quarter of fiscal 2024 (ending in July), Enghouse reported revenue of $130.5 million, up 17.6% year-over-year, from $111 million in the year-ago period. Recurring revenue, including Software-as-a-Service (SaaS) and maintenance services, increased 22.8% to $88.8 million and accounted for 68% of total revenue.

Enghouse emphasized that it is unique in the market with its SaaS and on-premise solutions. In addition, operational improvements in existing businesses and recent acquisitions increase cash flow and dividends.

Enghouse pays shareholders an annual dividend of $1.04 per share, which translates to a dividend yield of 3.3%. Additionally, these payouts have increased by 39% annually over the past decade. ENGH stock is valued at 21 times forward earnings and trades at a 22% discount to consensus target price estimates.