Broadcom Inc
Broadcom Dividend
Dividend
Broadcom has been paying a dividend since 2011, consistently growing it every year since.
The dividend has increased YOY by approximately 14.4% and the business has been growing shareholder distributions for over 14 years.
Like all technology stocks Broadcom’s dividend yield is hardly going to shoot the lights out at 1.42% however it is slightly healthier than others within the sector.
There is a solid track record for AVGO of increasing shareholder distributions well above inflation, which is a theme we like.
Q1 2025 dividend that was paid in March was $0.59 cents.
For comparison purposes I have detailed below the last nine years of dividends:
2024 $2.17
2023 £1.84
2022 $1.64
2021 $1.44
2020 $1.30
2019 $1.06
2018 $0.70
2017 $0.408
2016 $0.19
As this is the newest technology stock in the portfolio, we have only collected three quarterly income payments totalling £11.88 from holdings just nine shares.
Our ambition is to gradually increase technology holdings within the portfolio, as we have been under exposed in this sector.
AVGO’s holding within the portfolio will steadily increase over the next few years, as it is a business we like a lot.
Current fundamentals:
PE: 129.94 (31/03/2025)
FWD PE: 24.32 (31/03/2025)
Dividend yield: 1.42% (31/03/2025)
Further income analysis can been seen in the file below:
Broadcom average five year share price
Broadcom’s average five year share price sits between:
At the highest point the stock sat around $177.09 on the 14/07/24
To the lowest point being $15.56 on 22/03/2020 at the start of the pandemic.
The share price for Broadcom has fluctuated over the last five years quite dramatically due to the favourable technology sector, at certain points technology stocks experienced explosive gains.
Based purely using my own experience and metrics that I apply to my personal stock selection, I would be looking to further add shares between $120.00 to $150.00 dollars.
About Broadcom InC
About:
Broadcom Inc is located in Palo Alto, California and can be traded on the NASDAQ under ticker AVGO.
The company is both a designer in semiconductor solutions and infrastructure software business.
It designs and sells semiconductors, cloud security solutions and software, with revenues of £35.8 Billion in 2023 it is a leader within its sector.
Within the business it operates under two main segments, then within each of those two segments are five main sub sectors.
Semiconductor solutions:
Networking
Server storage
Broadband
Wireless
Industrial
Infrastructure software:
Mainframe
Distributed
Cyber Security
Storage area networking (SAN)
Cloud infrastructure
Much more detailed coverage can be found on their website where we can conduct more research on the various sub sectors, whilst being able to read their own company financial reports.
Click here to be taken directly through to their direct Broadcom Investor Relations website.
One of the main reasons for investing in Broadcom is that the aim of the portfolio is to identify stocks that have potential for both share price appreciation and have demonstrated dividend growth.
The purpose of the portfolio is to generate a steady passive income from income stocks whilst gradually working towards financial independence.
Broadcom fits into the portfolio well, as it has been growing both revenues and profits, moreover investor returns over the last nine years.
Average CAGR is 35% (Compound Annual Growth Rate). Click Here for a full description of CAGR, under our valuing stocks page.
There is also an AI play here with respect to their knowledge based processors or I should say, “Family of Processors”. Just researching this section of their website is extremely informative and interesting. Processors that can handle 2.4 billion searches a second. Pretty impressive!
FY 23 revenue was $35.8 Billion
Research was R & D $5.3 Billion
All successful businesses must know the importance of staying focused and relevant within their sector therefore a certain percentage of profits must be allocated for research and development. At AVGO this is not a messily amount either, at $5.3 billion in 2023 the company is ensuring spending towards future success is paramount, another reason for my investment during 2024’s tech pull back.
AVGO:NASDAQ
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