14 Best Dividend Stocks to Buy for Steady Growth

10. Broadcom Inc. (NASDAQ:AVGO)

5-Year Average Dividend Growth Rate: 12.60%

On May 12, Citi analyst Atif Malik raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) to $500 from $475 and maintained a Buy rating on the shares as part of an earnings preview. Citi said stronger AI demand could help Broadcom deliver April quarter results slightly above expectations. The firm also pointed to improved earnings visibility as a reason for the higher target.

“We model Apr-Q and Jul-Q sales/EPS modestly above consensus, driven by stronger AI demand,” Malik wrote in a note to clients. He also said Broadcom’s deal with Anthropic (ANTHRO) could provide additional benefits, as the shift from rack shipments to chips may support gross margins.

Malik added that Broadcom is also in discussions with three other customers regarding custom AI chips. The company already has agreements with Google, Meta, Anthropic, and OpenAI, along with two unnamed customers, one of which is believed to be ByteDance (BDNCE).

“We believe AVGO is engaged with three additional customers on custom AI chips,” Malik added. “While it is possible for AVGO to work with companies without their own LLMs on XPUs, it believes they are unlikely to scale to the size and depth of the current engagements.”

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductors, enterprise software, and security solutions. The company operates through two segments: semiconductor solutions and infrastructure software.