Broadcom (AVGO) DIvidends Date & History

Key Takeaways

• Broadcom Inc. (AVGO) pays a quarterly dividend of $0.65 per share, equating to an annualized dividend of $2.60 per share and a dividend yield of approximately 0.69%.
• The company has raised its dividend for 15 consecutive years since initiating payments in fiscal year 2011, cementing its status as a reliable dividend growth stock.
• In December 2025, Broadcom announced a 10% dividend increase, reflecting management's confidence in its massive free cash flow (FCF) generation, which reached $26.9 billion in fiscal year 2025.
• The payout ratio remains conservative at roughly 35–48% of earnings, depending on GAAP (Generally Accepted Accounting Principles) versus non-GAAP measurements, leaving ample room for future increases.
• Broadcom's dividend is exceptionally well-covered by free cash flow, with FCF surpassing total dividend obligations by a wide margin.
• While the yield is modest compared to traditional high-yield sectors, the combination of robust growth, AI-driven revenue expansion, and a multi-year dividend growth streak makes AVGO a compelling candidate for long-term dividend growth investors.

Dividend Overview

Broadcom Inc. (AVGO) is a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions. The company pays a quarterly cash dividend, with the most recent increase bringing the per-share payout to $0.65, or $2.60 on an annualized basis. Based on recent trading levels, this translates to a dividend yield of roughly 0.69%. While this yield is relatively low compared to high-dividend sectors such as utilities or real estate, Broadcom is not typically categorized as a high-yield stock. Instead, it is widely regarded as a premier dividend growth stock within the technology sector—one that prioritizes consistent, meaningful annual dividend increases over maximizing current yield. The company's fiscal year 2026 target annual dividend of $2.60 per share represents a record payout and marks the fifteenth consecutive year of dividend growth.

Dividend History and Growth

Broadcom initiated its dividend program in fiscal year 2011 and has increased its annual payout every single year since—a streak that now spans 15 consecutive years. The growth trajectory has been impressive. From a quarterly dividend of approximately $0.49 per share in early 2016, the payout has climbed to $0.65 per share by the end of 2025, reflecting a compound annual growth rate well above the broader market average. Fiscal year 2025 saw the total annual dividend reach $2.36 per share, and the 10% increase announced in December 2025 pushed the annualized rate to $2.60 for fiscal 2026. This consistent upward trend underscores management's commitment to sharing the company's expanding free cash flow with shareholders. Notably, Broadcom has never cut its dividend since inception, demonstrating remarkable reliability even through periods of semiconductor industry cyclicality and macroeconomic uncertainty.

Dividend Sustainability and Payout Ratio

Broadcom's dividend is among the most sustainable in the semiconductor industry. The company reported non-GAAP diluted earnings per share (EPS) of $6.82 for fiscal year 2025, placing the payout ratio at approximately 38% on a non-GAAP basis. Even on the more conservative GAAP basis—where diluted EPS was $4.77—the payout ratio stands at roughly 54%, which remains within a manageable range for a cash-generative technology company. More importantly, the dividend is measured against free cash flow rather than earnings alone. In fiscal 2025, Broadcom generated $26.9 billion in free cash flow, representing 42% of total revenue. Total dividend payments for the year were a fraction of that figure, resulting in an FCF payout ratio well below 50%. The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached a record $43.0 billion, further reinforcing the financial firepower backing the dividend. With $16.2 billion in cash and cash equivalents on the balance sheet at the end of Q4 2025, Broadcom possesses substantial liquidity to maintain and grow its dividend even in a downturn.

Dividend Compared to Industry Peers

Within the large-cap semiconductor and technology infrastructure space, Broadcom's dividend profile stands out for its combination of growth and reliability. Compared to peers, NVDA (NVIDIA) offers a negligible yield of under 0.05% as it prioritizes share buybacks and reinvestment. AMD (Advanced Micro Devices) does not pay a dividend at all. QCOM (Qualcomm) offers a higher yield of roughly 2%, while TXN (Texas Instruments) yields approximately 2.5% and also boasts a long dividend growth streak. ADI (Analog Devices) yields around 1.7%. Broadcom's ~0.69% yield sits at the lower end of the range for dividend-paying semiconductor peers, but its 15-year growth streak—combined with a much lower payout ratio than many higher-yielding names—positions it uniquely. Investors looking purely for current income may favor TXN or QCOM, while those seeking a balance of capital appreciation potential and reliable dividend growth may find Broadcom's profile more attractive.

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Is This Stock Attractive for Dividend Investors?

Broadcom (AVGO) is best suited for dividend growth investors rather than those seeking high current income. The modest yield of approximately 0.69% means the stock will not satisfy investors who need substantial cash flow from their portfolios today. However, for investors with a long-term horizon who prioritize consistent dividend increases, Broadcom presents a compelling case. The 15-year streak of annual dividend hikes, combined with exceptionally strong free cash flow generation and a conservative payout ratio, suggests the company has both the willingness and capacity to continue raising its dividend for years to come. The AI-driven growth tailwinds in Broadcom's semiconductor business add an additional layer of potential for capital appreciation alongside dividend growth. Conservative, income-oriented investors focused on current yield may prefer alternatives with higher starting yields in more traditional dividend sectors. Growth-oriented income investors, however, may appreciate Broadcom's rare blend of technology sector exposure, robust earnings momentum, and a shareholder-friendly dividend policy backed by one of the strongest balance sheets in the industry.

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