15 Best Performing Dividend Stocks So Far in 2025

3. Broadcom Inc. (NASDAQ:AVGO)

YTD Performance as of September 15: 54.8%

Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company. Macquarie expressed confidence in Broadcom’s long-term growth prospects, starting coverage of the semiconductor giant with an “Outperform” rating. Analyst Arthur Lai set a 12-month price target of $420 per share, implying about 17% upside from the prior Friday’s closing price. The stock has already surged 55% so far this year, which makes it one of the best perfoming stocks to invest in.

Lai noted that Broadcom Inc. (NASDAQ:AVGO) deserves to trade at a premium to its peers, pointing to its strong growth outlook, roughly 34% compound annual dividend growth in recent years, and a management incentive plan designed to support long-term strategy. He emphasized the rapid rise of application-specific integrated circuits (ASICs), which are growing faster than graphics processing units (GPUs). ASICs are more specialized chips, and Broadcom is seen holding a near-monopoly in AI ASIC and cloud networking solutions. According to Lai, global AI ASIC demand is projected to grow at a 72% compound annual rate from 2025 to 2028, with Broadcom expected to capture more than 70% of that market.

Broadcom Inc. (NASDAQ:AVGO)’s software business also adds strength. Following the VMware acquisition, the company’s operating margin improved to 66% from 62%, providing long-term margin stability, stronger free cash flow, and a potential re-rating for the stock.

Broadcom Inc. (NASDAQ:AVGO) has been growing its payouts for 14 consecutive years and currently offers a quarterly dividend of $0.59 per share. As of September 15, the stock has a dividend yield of 0.65%, as of September 15.