Dividend Power Score
A single, comprehensive score designed to measure the true strength of a company’s dividend.
This score combines three essential pillars of dividend quality:
Consistency – Measures how reliable the dividend has been over time, focusing on payment history, stability, and the absence of cuts or suspensions.
Payability – Assesses the company’s financial ability to sustain its dividend, taking into account cash flow, earnings coverage, balance sheet strength, and overall financial health.
Growth – Evaluates the long-term growth of both the dividend and the company’s share price, highlighting businesses that consistently increase payouts while creating shareholder value.
Higher scores identify companies that have historically delivered dependable income alongside sustained dividend growth and long-term capital appreciation.
Company Overview
Digi International Inc. is a U.S.-based technology company that provides Internet of Things (IoT) connectivity products, services, and solutions. The company operates primarily in the industrial IoT, enterprise networking, and embedded systems industries, enabling secure and reliable connectivity for devices deployed in mission-critical environments. Digi’s offerings are designed to help businesses connect, monitor, and manage distributed devices across various networks.
The company’s primary revenue drivers include cellular routers and gateways, embedded modules, and IoT software and services, with customers spanning industrial, transportation, healthcare, energy, and public sector markets. Digi differentiates itself through long product life cycles, security-focused design, and vertically integrated hardware-software solutions. Founded in 1985 as DigiBoard Inc., the company initially focused on multiport serial boards before evolving through acquisitions and internal development into a pure-play IoT connectivity provider. It rebranded as Digi International Inc. to reflect its broader global and technological scope.
Business Operations
Digi International operates through two primary business segments: IoT Products & Services and IoT Solutions. The IoT Products & Services segment includes cellular routers, gateways, embedded systems-on-modules, and related software tools that enable original equipment manufacturers (OEMs) and enterprises to integrate connectivity into their products and infrastructure. Revenue is generated through hardware sales, software licenses, and recurring service subscriptions.
The IoT Solutions segment delivers end-to-end managed IoT solutions, combining hardware, connectivity, software, and ongoing services. This segment includes Digi Wireless Design Services (WDS), which provides custom engineering and product design, and Digi Remote Manager, a cloud-based platform for device monitoring and management. Digi operates both domestically and internationally, with manufacturing outsourced to contract manufacturers and a global sales and support organization. The company maintains wholly owned subsidiaries in key markets and does not rely on material joint ventures for core operations.
Strategic Position & Investments
Digi International’s strategy centers on expanding recurring revenue from software and services while maintaining leadership in industrial-grade connectivity hardware. Growth initiatives include deeper penetration of vertical markets such as smart cities, industrial automation, and transportation, as well as cross-selling cloud management and security services to existing hardware customers.
The company has pursued targeted acquisitions to strengthen its software and solutions capabilities, including the acquisitions of Ventus Holdings, Centrak, and Opengear, which expanded Digi’s presence in smart infrastructure, healthcare IoT, and secure network management, respectively. Digi continues to invest in cellular technologies such as 5G, private LTE, and edge computing, with a focus on secure device lifecycle management and long-term deployment support.
Geographic Footprint
Digi International is headquartered in North America (United States), with its corporate headquarters located in Minnesota. The company has a significant presence across North America, which represents its largest revenue-generating region, supported by sales, engineering, and support operations.
Internationally, Digi operates across Europe, Asia-Pacific, and Latin America, with offices, subsidiaries, and distribution partners serving global customers. Its products are deployed worldwide in industrial and enterprise environments, and the company maintains international engineering and support resources to serve multinational customers and OEMs with global deployments.
Leadership & Governance
Digi International is led by an executive team with experience in industrial technology, networking, and software-driven business models. The leadership emphasizes a strategy focused on secure connectivity, recurring revenue growth, and disciplined capital allocation aligned with long-term shareholder value.
Key executives include:
- Ron Konezny – President and Chief Executive Officer
- Erik Van Gerven – Chief Financial Officer
- Brian Kirkendall – Chief Technology Officer
- Tom Dungan – Vice President, Product Management
- Dale Becker – Vice President, Operations and Supply Chain
The company operates under a board-governed structure consistent with U.S. public company standards, with oversight of strategy, risk management, and executive compensation aligned to performance and regulatory requirements.