Broadcom (AVGO) DIvidends Date & History

• Broadcom Inc. (AVGO) offers a modest current dividend yield of approximately 0.62%, with an annual payout of $2.60 per share.
• The company pays dividends quarterly, with the most recent ex-dividend date on March 23, 2026, and payment on March 31, 2026.
• AVGO has raised its dividend for 15 consecutive years, showcasing strong commitment to shareholders since initiating payouts in fiscal 2011.
• A payout ratio around 46% indicates solid sustainability, supported by robust free cash flow of $26.9 billion in fiscal 2025.
• Dividend growth averaged 11% over the past year and 12.6% over five years, positioning AVGO as a dividend growth stock.
• Free cash flow comfortably covers dividends, with ample room for continued increases amid AI-driven revenue expansion.

Dividend Overview

Broadcom Inc. (AVGO), a leading designer of semiconductors and infrastructure software, maintains a disciplined quarterly dividend policy. The current annual dividend stands at $2.60 per share, delivering a yield of about 0.62% based on recent trading levels. The latest quarterly payout was $0.65 per share, declared in early March 2026 with an ex-dividend date of March 23, 2026, and payment on March 31, 2026. This reflects a 10% increase from the prior quarter, underscoring management's confidence in cash generation.

AVGO qualifies as a dividend growth stock rather than a high-yield play, prioritizing reinvestment in high-margin AI chips and software while consistently rewarding shareholders. With explosive demand for custom AI accelerators and networking solutions, the company's dividend profile appeals to investors seeking reliable income paired with capital appreciation potential. The policy balances payout growth with financial flexibility, supported by strong earnings visibility.

Dividend History and Growth

Broadcom Inc. (AVGO) initiated its dividend in fiscal 2011 and has increased it annually for 15 consecutive years, a testament to its operational resilience and strategic acquisitions like VMware. The quarterly dividend rose from $0.59 in late 2025 to $0.65 in early 2026, marking a 10% hike and extending the growth streak.

Over the past year, dividend growth reached 11%, with five-year and three-year compounded annual growth rates (CAGR) of approximately 12.6% and 12.5%, respectively. Longer-term, 10-year growth exceeds 30% annually, driven by expanding margins in semiconductors and recurring software revenue. No cuts have occurred, reflecting a long-term strategy of returning excess cash via dividends and buybacks while fueling innovation in AI infrastructure.

Dividend Sustainability and Payout Ratio

Broadcom Inc.'s (AVGO) dividend sustainability is robust, underpinned by a payout ratio of around 46% of earnings. This leaves significant retention for R&D and growth initiatives. Fiscal 2025 free cash flow hit a record $26.9 billion (42% of revenue), easily covering the $3.1 billion in dividends paid that year and enabling a new $10 billion share repurchase authorization.

Earnings per share comfortably exceed dividend requirements, with interest coverage over 10x on $66 billion in debt (debt-to-equity at 83%). Operating cash flow of $29.7 billion trailing twelve months further bolsters coverage. Amid AI revenue surging 63% year-over-year, AVGO's balance sheet—bolstered by $14 billion in cash—positions the dividend for ongoing growth without strain.

Dividend Compared to Industry Peers

In the semiconductor sector, where the average yield hovers around 0.76-1%, Broadcom Inc.'s (AVGO) 0.62% is modest but competitive among growth-oriented peers. TSM yields about 0.96%, while QCOM offers 1.97% and TXN around 2%. High-growth names like AMD and MU pay no dividends, prioritizing reinvestment.

AVGO stands out with superior growth—11% one-year dividend increase versus sector medians—and a safer payout ratio (46% vs. higher for mature peers like TXN at 95%). This profile suits investors favoring total return over immediate yield in a cyclical industry.

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Is This Stock Attractive for Dividend Investors?

Broadcom Inc. (AVGO) may appeal to dividend growth investors who prioritize compounding payouts over high current yields. Its 15-year streak of increases, backed by double-digit historical growth and a conservative 46% payout ratio, aligns with strategies favoring long-term income escalation. The stock suits those comfortable with technology sector volatility, drawn by AI tailwinds boosting free cash flow coverage.

For conservative income seekers, the modest 0.62% yield lags peers like QCOM (2%) or TXN (2%), but AVGO's elite margins (40%+ EBITDA) and $27 billion annual cash flow offer superior sustainability. Long-term holders may value the blend of 12%+ dividend CAGR and stock appreciation potential from custom AI chips. Balanced portfolios could allocate to AVGO for diversification beyond traditional high-yield industrials, though cyclical risks warrant monitoring. Overall, it fits growth-oriented dividend portfolios emphasizing quality over quantity.

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