Broadcom (AVGO) DIvidends Date & History

Key Takeaways

• Broadcom Inc. (AVGO) pays a quarterly dividend of $0.65 per share, translating to an annual dividend of $2.60 per share and a dividend yield of approximately 0.7%.
• The company has raised its dividend for 15 consecutive years since initiating payments in fiscal 2011, with a five-year annualized dividend growth rate exceeding 12%.
• Broadcom's dividend payout ratio stands at approximately 35% to 48% of earnings, reflecting strong coverage and ample room for future increases.
• Free cash flow reached $26.9 billion in fiscal 2025, providing substantial financial flexibility to sustain and grow the dividend while funding share buybacks.
• The dividend profile is best suited for dividend growth investors rather than those seeking high current income, given the sub-1% yield.

Dividend Overview

Broadcom Inc. (AVGO), a global leader in semiconductor and infrastructure software solutions, has established itself as one of the technology sector's most consistent dividend payers. The company pays a quarterly cash dividend, most recently set at $0.65 per share, which brings the annualized payout to $2.60 per share. Based on recent trading levels, this equates to a dividend yield of roughly 0.7% — a modest figure that places Broadcom firmly in the low-yield category. However, what Broadcom lacks in current yield it makes up for in dividend growth momentum. The company has built a reputation as a reliable dividend grower rather than a high-yield income play, making it a standout among large-cap semiconductor stocks. With payments occurring on a regular quarterly schedule — typically with ex-dividend dates in late March, June, September, and December — Broadcom offers a predictable and steadily rising income stream for long-term shareholders.

Dividend History and Growth

Broadcom's dividend track record is remarkable in the technology sector. The company has increased its annual dividend for 15 consecutive years since first initiating dividends in fiscal 2011. The growth trajectory has been steep: Broadcom's annual dividend per share rose from $1.44 in fiscal 2021 to $1.64 in 2022, $1.84 in 2023, $2.11 in 2024, and $2.36 in fiscal 2025. The most recent increase — a 10.2% hike from $0.59 to $0.65 per share — was announced in December 2025 alongside record quarterly revenue of $18 billion. CFO Kirsten Spears noted the target fiscal 2026 annual dividend of $2.60 per share represents a record and marks the fifteenth consecutive annual increase. Over the past five years, Broadcom's dividend has grown at an annualized rate between 12% and 15%, a pace that significantly outpaces inflation and places it among the fastest dividend growers in the large-cap technology universe. This commitment to returning capital has persisted even through the company's $69 billion acquisition of VMware, completed in late 2023, demonstrating management's confidence in Broadcom's cash-generating capabilities.

Dividend Sustainability and Payout Ratio

Broadcom's dividend appears well-protected by robust financial fundamentals. The payout ratio — the proportion of earnings distributed as dividends — ranges between approximately 35% and 48%, depending on whether the calculation uses GAAP (Generally Accepted Accounting Principles) earnings or free cash flow. This conservative ratio leaves significant room for reinvestment, debt reduction, and future dividend increases. In fiscal 2025, Broadcom generated $26.9 billion in free cash flow, a 39% year-over-year increase, while returning $17.5 billion to shareholders through $11.1 billion in dividends and $6.4 billion in share repurchases. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 35% to a record $43 billion. Even after substantial capital returns, Broadcom retained ample cash to fund operations and strategic initiatives. The company's AI-driven revenue tailwind — with AI-related revenue hitting $20 billion in fiscal 2025 and a total consolidated backlog of $162 billion — provides additional visibility into future cash flows. While Broadcom carries acquisition-related debt, its free cash flow generation and $7.5 billion remaining share repurchase authorization signal confidence in sustained dividend capacity.

Dividend Compared to Industry Peers

Within the semiconductor and large-cap technology landscape, Broadcom occupies a distinctive position. Its dividend yield of roughly 0.7% is substantially below that of mature semiconductor peers such as TXN (Texas Instruments), which yields around 2.5%, and QCOM (Qualcomm), which yields approximately 2%. However, Broadcom's dividend growth rate far outpaces both. At the other end of the spectrum, NVDA (NVIDIA) pays a negligible dividend yielding well under 0.1%, while AMD (Advanced Micro Devices) does not pay a dividend at all. INTC (Intel), once the gold standard for semiconductor dividends, suspended its payout entirely to preserve capital. This leaves Broadcom as a rare hybrid: a technology giant that combines aggressive AI-driven revenue growth with a disciplined, long-standing dividend growth policy. For investors seeking both tech-sector exposure and rising income, Broadcom stands in a class largely of its own among trillion-dollar-market-cap peers.

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Is This Stock Attractive for Dividend Investors?

Broadcom is best suited for dividend growth investors and long-term total-return investors rather than those seeking high immediate income. With a yield below 1%, the stock will not satisfy investors who depend on dividends for current living expenses or who prioritize yield above all else. However, for investors focused on compounding income over time, Broadcom's 15-year dividend growth streak and double-digit annual increases make a compelling case. The low payout ratio and expanding free cash flow — fueled by AI infrastructure demand — suggest the dividend growth trajectory can continue. Income-oriented investors should note that Broadcom's yield ranks near the bottom of the dividend-paying semiconductor universe, and price appreciation has historically driven the bulk of total returns. Conservative, income-first investors may find better yield alternatives in sectors such as utilities or consumer staples. That said, for growth-minded investors who value a rising income stream alongside exposure to artificial intelligence and enterprise infrastructure themes, Broadcom offers a rare combination of innovation-driven capital gains potential and dependable dividend growth. As with any equity investment, individual circumstances, risk tolerance, and portfolio objectives should guide decision-making.

Disclaimer

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