5 Best Blue Chip Dividend Stocks to Buy in August

3. Broadcom Inc. (NASDAQ:AVGO)

Dividend Yield as of August 11: 2.98%

Broadcom Inc. (NASDAQ:AVGO), a California-based semiconductor company, reported over $4.15 billion in free cash flow in Q1 2022, up from $3.38 billion in the previous quarter. The company’s operating cash flow grew to $4.2 billion, from $3.48 billion in the preceding quarter. Its cash flow generation is enough for future payouts, as dividend payments represented $1.7 billion of its FCF in Q1.

Broadcom Inc. (NASDAQ:AVGO) pays a quarterly dividend of $4.10 per share, with a dividend yield of 2.98%, as recorded on August 11. The company has been consistently raising its dividends for 11 years.

In July, Deutsche Bank set a $635 price target on Broadcom Inc. (NASDAQ:AVGO) with a Buy rating on the shares. The firm believes that the company is well-positioned to survive the possible supply chain issues.

At the end of Q1 2022, 71 hedge funds tracked by Insider Monkey owned stakes in Broadcom Inc. (NASDAQ:AVGO), up from 62 in the previous quarter. These stakes hold a combined value of over $5.4 billion, compared with $4.8 billion worth of stakes owned by hedge funds in the preceding quarter.

ClearBridge Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here is what the firm has to say:

“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”