Broadcom (AVGO) DIvidends Date & History

Key Takeaways

• Broadcom Inc. (AVGO) pays a quarterly dividend of $0.65 per share, targeting an annual payout of $2.60 per share for fiscal year 2026.
• The dividend yield is approximately 0.67%, reflecting the stock's significant price appreciation rather than a small payout.
• Broadcom has raised its dividend for 15 consecutive years since initiating payments in fiscal 2011, establishing a strong track record of dividend growth.
• The payout ratio is approximately 48% based on free cash flow, indicating a conservative and well-covered dividend.
• Fiscal 2025 free cash flow reached $26.9 billion, providing ample coverage for the dividend and room for future increases.
• The most recent 10% dividend increase, announced in December 2025, underscores management's commitment to returning capital to shareholders.

Dividend Overview

Broadcom Inc. (AVGO) is a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions. The company has built a reputation as a reliable dividend payer within the technology sector, a space not traditionally known for consistent shareholder income. Broadcom pays a quarterly cash dividend of $0.65 per share, which translates to an annualized payout of $2.60 per share for fiscal year 2026. Based on recent trading levels, the dividend yield stands at approximately 0.67%. While this yield is modest compared to high-yielding sectors such as utilities or real estate, Broadcom is primarily classified as a dividend growth stock rather than a high-yield play. The company's strategy centers on delivering double-digit annual dividend increases funded by robust free cash flow generation. The next dividend payment is scheduled for June 30, 2026, to shareholders of record as of June 22, 2026.

Dividend History and Growth

Broadcom initiated its dividend program in fiscal 2011 and has increased the payout every single year since, marking 15 consecutive years of annual dividend growth. This track record places Broadcom among a select group of technology companies with such consistency. The dividend growth rate has been impressive: over the past five years, the annual dividend has grown at a double-digit compound annual growth rate (CAGR), far outpacing inflation and most sector peers. In December 2025, the company raised its quarterly dividend by 10%, from $0.59 to $0.65 per share. Prior to that, Broadcom implemented an 11% increase in December 2024 and a 14% increase in December 2023. Notably, the company also completed a 10-for-1 stock split in July 2024, making the stock more accessible to retail investors while maintaining proportional dividend payments. The consistency of Broadcom's dividend growth reflects management's disciplined capital allocation framework, which targets returning approximately 50% of prior-year free cash flow to shareholders through dividends.

Dividend Sustainability and Payout Ratio

Broadcom's dividend appears highly sustainable based on key financial metrics. The company maintains a payout ratio of approximately 48% when measured against free cash flow, meaning less than half of its cash from operations minus capital expenditures is directed toward dividend payments. This conservative ratio leaves a substantial cushion for reinvestment in the business, debt servicing, and strategic acquisitions. In fiscal 2025, Broadcom generated $26.9 billion in free cash flow, representing 40% of total revenue, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached a record $43.0 billion. The company's diversified revenue base—spanning semiconductor solutions and infrastructure software, including the VMware acquisition finalized in late 2023—provides multiple streams of recurring and predictable cash flow. Broadcom carries meaningful debt following the VMware transaction, but its strong free cash flow generation, high gross margins of approximately 65%, and disciplined capital management indicate that dividend payments are well-covered and not at risk under current operating conditions.

Dividend Compared to Industry Peers

Within the semiconductor and technology infrastructure sector, Broadcom's dividend profile stands out for its growth trajectory rather than its current yield. When compared to key industry peers, the distinctions become clear:

• NVDA (NVIDIA) offers a minimal dividend yield of approximately 0.02%, reflecting a pure growth orientation.
• TXN (Texas Instruments) provides a higher yield in the 2.5% to 3.0% range with its own lengthy dividend growth history.
• QCOM (Qualcomm) delivers a moderate yield around 2.0% to 2.5%.
• INTC (Intel) has historically paid dividends but suspended its payout in 2024 to preserve capital amid operational challenges.

Broadcom occupies a unique position: its yield is higher than growth-focused peers like NVIDIA while its dividend growth rate surpasses that of many higher-yielding semiconductor stocks. For investors who prioritize growing income over current yield, Broadcom's dividend profile is among the most compelling in the technology sector.

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Is This Stock Attractive for Dividend Investors?

Broadcom may appeal most to dividend growth investors and total return-oriented investors who prioritize consistent payout increases over high current income. With a yield of approximately 0.67%, the stock is not suitable for investors seeking immediate, high-yield income to cover living expenses. However, for long-term investors with a multi-year time horizon, Broadcom's 15-year streak of annual dividend increases and double-digit growth rate offer a compelling compounding narrative. The company's robust free cash flow and disciplined payout ratio suggest that future dividend increases remain probable. Broadcom also suits investors who want exposure to the artificial intelligence and semiconductor megatrends without sacrificing a growing income stream. More conservative income investors may find better yield opportunities elsewhere in sectors such as consumer staples or utilities, but those seeking a blend of capital appreciation potential and reliable dividend growth may find Broadcom's profile aligned with their goals. As always, individual investment decisions should be based on personal financial circumstances, risk tolerance, and portfolio objectives.

Disclaimer

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