Broadcom (AVGO) DIvidends Date & History

Key Takeaways

• Broadcom pays a quarterly dividend of $0.65 per share, for an annual total of $2.60 and a current yield of approximately 0.71%.
• The company has raised its dividend for 15 consecutive years, demonstrating a consistent growth track record.
• The payout ratio stands at roughly 41%, indicating strong earnings coverage and room for future increases.
• Free cash flow comfortably supports the dividend, with the FCF payout ratio near 37%.
• Broadcom’s dividend profile suits dividend growth investors more than those seeking high current income.
• Compared with many semiconductor peers, the yield is modest while growth has outpaced the sector average.

Dividend Overview

Broadcom Inc. (AVGO) follows a quarterly dividend policy and currently distributes $0.65 per share each quarter, resulting in an annualized payout of $2.60. At the recent share price near $369, this produces a trailing yield of about 0.71%. The company is best characterized as a dividend growth stock rather than a high-yield name. Payments occur in March, June, September, and December, with the most recent ex-dividend date falling on June 22, 2026. The modest yield reflects Broadcom’s focus on reinvesting cash into growth initiatives while still returning capital to shareholders through steady increases.

Dividend History and Growth

Broadcom has maintained an uninterrupted streak of annual dividend increases for 15 years. The quarterly payout has risen from $0.36 (split-adjusted) five years ago to the current $0.65 level, representing compound annual growth near 12.5%. Recent hikes have averaged 10% to 11% per year. The company has paid dividends since 2011 and has never cut the payout, underscoring a disciplined capital-return strategy even during periods of significant acquisitions and technology investments.

Dividend Sustainability and Payout Ratio

The dividend appears well supported. Broadcom’s payout ratio of approximately 41% leaves substantial earnings available for reinvestment or further increases. Free cash flow coverage is even stronger, with the FCF payout ratio near 37%. Robust cash generation from its semiconductor and infrastructure software businesses, combined with manageable debt levels, provides a solid foundation for continued payments. Analysts generally view the current policy as sustainable given the company’s strong balance sheet and multi-year visibility into revenue streams.

Dividend Compared to Industry Peers

Within the semiconductor and technology hardware sector, Broadcom’s yield of 0.71% sits below several larger peers such as Texas Instruments (around 2.2%) and International Business Machines (around 2.9%). However, its dividend growth rate has exceeded the typical pace seen among chipmakers. Many pure-play semiconductor companies offer either no dividend or very low yields, making Broadcom’s combination of consistent increases and still-low payout ratio relatively attractive for growth-oriented income strategies.

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Is This Stock Attractive for Dividend Investors?

Broadcom appeals primarily to dividend growth investors with long time horizons who value consistent annual increases over immediate high income. The low current yield limits its suitability for conservative income portfolios that require substantial cash flow today. However, the combination of a low payout ratio, strong free cash flow, and a proven history of double-digit dividend growth positions the stock well for investors seeking compounding income over many years. Those comfortable with technology-sector volatility may find the balance of modest yield and above-average growth attractive, while pure income seekers might prefer higher-yielding names in more defensive sectors. The stock does not suit short-term traders focused solely on dividend capture.

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