Broadcom (AVGO) DIvidends Date & History

Key Takeaways

• Broadcom (AVGO) pays a quarterly dividend of $0.65 per share, equal to an annual payout of $2.60 per share.
• The current dividend yield is roughly 0.7%, which is modest relative to the broader market and best suits growth-oriented investors.
• Broadcom has raised its dividend for 15 consecutive years, most recently by 10% in December 2025.
• The dividend is well covered by free cash flow, with payouts consuming only about 30% of recent quarterly free cash flow.
• The stock appeals more to dividend growth investors than to those seeking immediate income.

Dividend Overview

Broadcom Inc. (AVGO), the semiconductor and infrastructure software giant headquartered in Palo Alto, California, maintains a consistent quarterly dividend policy. The company currently pays $0.65 per share each quarter, or $2.60 per share annually, translating to a dividend yield of approximately 0.7%. Dividends are paid in March, June, September, and December, with the most recent ex-dividend date on September 21, 2026, and payment on September 30, 2026.

Broadcom is best described as a dividend growth stock rather than a high-yield stock. Its yield is deliberately modest, and management prioritizes reinvesting cash into artificial intelligence (AI) semiconductor development and strategic acquisitions. For investors, the payout serves as a steady but secondary component of total return, complementing the company's strong share-price appreciation.

Dividend History and Growth

Broadcom's dividend history tells a story of rapid, compounding growth. When the company's predecessor, Avago Technologies, initiated its first payout in December 2010, it was just seven cents per share. After Broadcom's 10-for-1 stock split in 2024, that original dividend adjusts to well under a penny. Today's $0.65 quarterly payout represents a more than 90-fold increase from the initial check.

The company has now increased its dividend for 15 consecutive years, typically announcing its annual raise each December alongside fourth-quarter results. Growth has moderated from the exceptional early years—when the board once doubled the payout in a single stroke—to a steadier pace of roughly 10% to 12% annually. Over the past five years, the quarterly dividend has compounded at about 12.5% per year, a rate that still doubles the payout approximately every six years.

Dividend Sustainability and Payout Ratio

Broadcom's dividend appears highly sustainable. The payout ratio sits near 31% of trailing earnings, a conservative level that leaves substantial room for future increases. Measured against cash flow, coverage is even more comfortable: in the fiscal second quarter of 2026, the company generated approximately $10.3 billion in free cash flow, and dividend payments of roughly $3.1 billion consumed only about 30% of that total.

The company's asset-light business model supports this strength. Broadcom's capital expenditures are minimal compared with its operating cash flow, and free cash flow has been accelerating rapidly, driven by surging AI semiconductor revenue. While the company does carry meaningful debt related to acquisitions, its expanding cash generation and modest payout ratio provide ample capacity to service that debt while continuing to raise the dividend.

Dividend Compared to Industry Peers

Within the semiconductor sector, Broadcom's yield is near the middle of the pack. Its roughly 0.7% yield exceeds that of NVDA (Nvidia), which pays only a nominal dividend, but trails income-oriented chipmakers such as TXN (Texas Instruments), which historically yields over 2%. QCOM (Qualcomm) also carries a higher yield, typically around 2%.

What distinguishes Broadcom among peers is its combination of double-digit dividend growth with a low payout ratio. Many higher-yielding semiconductor companies offer slower payout growth, while faster-growing peers often pay little or no dividend at all. Broadcom's profile is therefore best characterized as a balanced blend: a modest current yield paired with an above-average long-term growth trajectory.

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Is This Stock Attractive for Dividend Investors?

Broadcom is best suited for dividend growth investors and long-term, growth-oriented shareholders rather than those seeking immediate income. With a yield near 0.7%, the stock will not generate meaningful cash flow for a portfolio dependent on current payouts. However, its 15-year streak of increases, roughly 12% annualized dividend growth, and low payout ratio make it appealing to investors focused on compounding income over time.

Investors who prioritize capital appreciation alongside a steadily growing payout may find the profile compelling, as the dividend historically rises in tandem with the company's expanding AI-driven cash flow. Conservative, income-focused investors, by contrast, may find the yield too low to meet their needs and may prefer higher-yielding alternatives. As with any equity, dividend growth is not guaranteed and depends on continued business performance and management priorities.

Disclaimer

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