5 Semiconductor Stocks that Pay Dividends

2. Broadcom Inc. (NASDAQ:AVGO)

Dividend Yield as of August 23: 3.08%

An American semiconductor company, Broadcom Inc. (NASDAQ:AVGO) showcased strong financial results in Q2 2022, topping the Street’s consensus on various fronts. The company’s revenue for the quarter came in at $8.1 billion, which presented 22.5% growth from the same period last year. The firm also generated $4.2 billion in free cash flow during the quarter, which smoothly covered its dividend payments of $1.7 billion.

Broadcom Inc. (NASDAQ:AVGO) holds an 11-year track record of dividend growth. The company pays a quarterly dividend of $4.10 per share and its shares have a yield of 3.08%, as of August 23.

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 ongoing supply chain issues.

According to Insider Monkey’s Q2 data, Fisher Asset Management was the largest stakeholder of Broadcom Inc. (NASDAQ:AVGO), owning a stake worth over $716 million. In addition to this, 65 other hedge funds owned stakes in the company in Q2, with a total value of over $4 billion.

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