Does Broadcom Pay Dividends in 2024? 14 Years of AVGO Dividend Growth

Yes, Broadcom pays dividends. As of June 18, 2024, Broadcom is the highest-paying dividend stock, with the latest Broadcom dividend per share of $5.25.

Broadcom is one of the best-known infrastructure software and semiconductor companies in the world. It was founded in 1961 as HP Associates, a semiconductor products branch of Hewlett-Packard.

Some of its key products include sensors, wireless networks, optical transceivers, and data center security.

With a market capitalization of $851.31 billion, Broadcom is the 10th largest company in the world. Henry Samueli is the current chairman, while Hock Tan is the chief executive officer and president.

So, how much does Broadcom pay in dividends? In this article, we explore AVGO’s dividend growth history and learn how the company has maintained high payments over the years.

Table of Contents Table of Contents

1. Key Takeaways
2. How Often Does Broadcom Pay a Dividend?
3. Why Is Broadcom's Dividend So High?
4. Broadcom Dividend History
5. Will Broadcom Ever Increase Its Dividend?
6. What Are Dividends?
7. The Bottom Line
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. How Often Does Broadcom Pay a Dividend?
3. Why Is Broadcom's Dividend So High?
Show Full Guide
4. Broadcom Dividend History
5. Will Broadcom Ever Increase Its Dividend?
6. What Are Dividends?
7. The Bottom Line
8. FAQs
9. References

How Often Does Broadcom Pay a Dividend?

One of the important questions for AVGO investors is: When does Broadcom pay dividends? The company pays dividends quarterly in March, June, September, and December. The last Broadcom dividend was a cash dividend of $5.25, paid on March 29, with an ex-dividend date of 21 March.

The ex-dividend is the date following which new investors of a particular stock will not receive that quarter’s dividends. The next Broadcom stock dividend is also expected to be a cash one of $5.25, which will be paid on June 28, with an ex-dividend date of June 24.

However, Broadcom recently announced its first stock split, which will be a 10-for-1 split and come into effect on July 15.

On this date, each existing share will be split into ten shares. Similarly, the current annual Broadcom dividend per share, which is $21 per share, will also be divided, coming down to $2.10 per share per year or $0.52 per share approximately per quarter.

Why Is Broadcom’s Dividend So High?

Currently, before the stock split comes into effect in July, Broadcom has one of the highest dividends amongst US dividend-paying stocks, at $5.25 per share per quarter, or $21 per annum. This is mainly due to the company’s exponential growth when the artificial intelligence sector boomed due to the soaring demand for semiconductors.

Broadcom has also diversified considerably into the software sector, adapting to meet client needs such as posting its engineers close to its biggest clients. It has made a number of strategic takeovers and investments, including LSI Corporation, PLX Technology, and Emulex Corporation, amongst others.

This has led to significantly increased earnings, allowing Broadcom to pay out handsome dividends as a result. Furthermore, due to it not having done any stock splits previously, its share price is also on the higher side of tech stocks. This, in turn, has attracted more investors in dividend stocks.

However, following its first-ever stock split in July, the Broadcom dividend will technically fall to $2.10 per share annually per share, or $0.52 per share per quarter, which is around the average for tech stocks.

Broadcom Dividend History

The Broadcom dividend history has been quite consistent and promising so far. Following the company going public in 2009, Broadcom started paying dividends back in 2010, with a cash dividend of $0.07 per share.

Since then, the stock’s dividends have grown consistently, sometimes by a few pennies and sometimes by a lot more. However, Broadcom has never stopped paying dividends ever since it started.

Broadcom Dividend Yield

The dividend yield shows investors how much a company gives out in dividends, compared to the current stock price. A strong dividend yield is considered to be anywhere between 2% and 5%.

The current Broadcom dividend yield is 1.61%, which is slightly above the S&P 500’s 1.3% yield.

Broadcom Dividend Payout

Broadcom’s current dividend payout ratio is 34.86%, with the company being marked as a ‘Strong Buy’ according to a poll of 23 Wall Street Analysts. The dividend payout ratio tells investors how much of a company’s earnings are being paid out as dividends.

A good dividend payout ratio is between 30% and 50%, with Broadcom still in that range; however, it is slightly on the lower side. Companies with higher dividend payout ratios may find themselves with less cash to reinvest in the business. On the other hand, companies with a lower dividend payout ratio have more room to grow their dividends down the line.

Broadcom Dividend Growth

The Broadcom dividend started at $0.07 per share in 2010. However, by 2015, dividends were $0.44, touching $1.75 by 2017. By the end of 2019, dividends had leaped to $3.25 and to $3.60 by December 2020. By 2022, they had increased to $4.60, and they were $5.25 as of June 2024.

This consistent dividend growth has gone a long way in persuading investors that Broadcom is a stable dividend stock.

Will Broadcom Ever Increase Its Dividend?

Broadcom recently announced robust second fiscal quarter 2024 results, with revenues touching $12.49 billion, above market forecasts of $12.03 billion.

The company also hiked its fiscal 2024 yearly revenue expectations to $51 billion, which was a surge of 42% from the previous period. This was mainly due to earnings from VMware, a cloud computing subsidiary.

Tech Stocks That Pay Higher Dividends

At the time of writing, Broadcom is the highest-paying dividend stock.

But, once the stock split happens in July, the dividend will come down to $0.52, which puts it in line with other popular tech dividend-paying stocks, including Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Alphabet (GOOGL), and Meta Platforms (META).

What Are Dividends?

Dividends are compensation paid to the shareholders or investors of a company in return for keeping the shares, sometimes for several years. They are given out from a company’s net profits, which means that in times of loss, dividends can be canceled. Dividends are paid on a per-share basis.

Dividends can be in cash, property, stock, or scrip. Payment schedules can vary from monthly to quarterly, half-yearly, and annually. Most dividend-paying stocks follow quarterly dividends. However, this depends on the individual company.

Why Are They Important to Investors?

Dividends carry significant weight for investors as they are seen as a source of dependable income. Investors usually choose to use dividends for reinvesting, retirement, excess savings, or discretionary funds, among other things.

Companies consider dividends as rewards for investors supporting the company through turbulence.

The Bottom Line

Broadcom is a US-based semiconductor and infrastructure software giant with unprecedented growth due to the artificial intelligence and semiconductor boom. The company pays quarterly dividends in March, June, September, and December, with the latest dividend of $5.25 per share, paid on March 29, and the next one due in June.

Broadcom has consistently paid dividends since 2010. The company announced its first-ever 10-for-1 stock split due on July 15, after which its dividend per quarter per share is expected to come down to $0.52.

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