Broadcom (AVGO)’s Growth and Consistent Dividends: How the Chipmaker Rewards Shareholders

Broadcom Inc. (NASDAQ:AVGO) is included among the 13 Best Consistent Dividend Stocks to Buy Now.

Broadcom (AVGO)'s Growth and Consistent Dividends: How the Chipmaker Rewards Shareholders

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Broadcom Inc. (NASDAQ:AVGO), best known for its networking chips, has steadily expanded into corporate infrastructure software over the years. The company also plays an important role in artificial intelligence, as its networking chips allow large AI clusters in data centers to communicate efficiently and handle massive data workloads.

This strong growth has enabled Broadcom Inc. (NASDAQ:AVGO) to raise its dividend by an average of 14% annually over the past five years. With significant opportunities in AI and a relatively low payout ratio of 36%, the company is well-positioned to deliver continued dividend growth for years to come.

On September 4, Broadcom Inc. (NASDAQ:AVGO) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. Overall, the company has been growing its payouts for 14 consecutive years, which places it among the best dividend stocks to consider. The stock has a dividend yield of 0.66%, as of September 12.

While we acknowledge the potential of AVGO as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.