5 Best Dividend Stocks to Buy in 2022

4. Broadcom Inc. (NASDAQ:AVGO)

Dividend Yield as of July 21: 3.20%

Broadcom Inc. (NASDAQ:AVGO) manufactures products for wireless and broadband communication industries. The technology company also specializes in semiconductors and infrastructure software solutions.

Broadcom Inc. (NASDAQ:AVGO) presented solid results in the fiscal Q2 of 2022 and expects its financials to remain strong for the coming quarters as well. The company reported $4.2 billion in free cash flow, up from $3.4 billion during the same period last year. Its cash flow from operations stood at $4.24 billion, compared with $3.5 billion in the prior-year period. Moreover, Broadcom Inc. (NASDAQ:AVGO) returned $1.7 billion worth of cash dividends to shareholders during the quarter. The company maintains an 11-year track record of dividend growth. In fiscal Q2, it paid out 50% of its free cash flow as dividends, signaling further dividend growth. Its quarterly payout stands at $4.10 per share, with a yield of 3.20%, as of July 21.

Highlighting the supply chain issues, Deutsche Bank lowered its price target on Broadcom Inc. (NASDAQ:AVGO) in July to $635 but kept a Buy rating on the shares.

Insider Monkey’s Q1 2022 database reported increased hedge fund interest for Broadcom Inc. (NASDAQ:AVGO), with 71 hedge funds holding stakes in the company, up from 62 in the previous quarter. These stakes are collectively valued at over $5.4 billion.

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.”