AVGO Stock: A Strong Buy Pick Backed by Robust Cash Flow and Dividend Growth

Broadcom Inc. (NASDAQ:AVGO) is included among the Best Strong Buy Dividend Stocks to Invest in Now.

AVGO Stock: A Strong Buy Pick Backed by Robust Cash Flow and Dividend Growth

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO), a semiconductor and infrastructure firm, has consistently outperformed the market in recent years, thanks to the strong growth across the tech sector. The company serves a wide range of industries, including cloud infrastructure, networking, cybersecurity, storage, broadband, wireless, and hyperscale data centers. Its acquisition of VMware in late 2023 further strengthened its position in infrastructure software. The stock has surged by over 28% since the start of 2025.

Broadcom Inc. (NASDAQ:AVGO)’s core business, including contributions from VMware, generates steady and reliable cash flow. In addition to its solid footing in the tech space, it is also recognized as a dependable dividend-paying stock, offering a combination of income and long-term growth.

Since introducing its dividend in 2011, Broadcom Inc. (NASDAQ:AVGO) has increased its payout every year for 14 consecutive years, including an 11% boost last year. With strong growth driven by rising demand for its AI-focused semiconductors, the company appears well-positioned to continue raising its dividend moving forward. The company offers a quarterly dividend of $0.59 per share and has a dividend yield of 0.79%, as of July 29.

While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.