May 13, 2026 a 07:46 am
AVGO: Dividend Analysis - Broadcom Inc.
Broadcom Inc. presents a robust dividend profile reflecting a consistent history of payouts over 17 years. The company has shown a moderate average dividend growth rate of approximately 12.63% over the past 5 years, demonstrating its commitment to shareholder returns. Coupled with disciplined payout ratios and a strong capital allocation efficiency, Broadcom stands out as a compelling choice for dividend-focused investors. The absence of recent dividend cuts further underscores its stability.
📊 Overview
The overview of Broadcom Inc.'s dividend profile affirms its stature in the technology sector with a moderate dividend yield of approximately 0.77%. Its current dividend per share stands at 2.36 USD, backed by a solid dividend history that spans 17 years, with no recent cuts or suspensions.
| Description | Details |
|---|---|
| Sector | Technology |
| Dividend yield | 0.77% |
| Current dividend per share | 2.36 USD |
| Dividend history | 17 years |
| Last cut or suspension | None |
🏛️ Dividend History
Broadcom's consistent dividend history marks its operational resilience and commitment to return capital to shareholders. This consistency not only provides income but also signals corporate stability and confidence in future cash flows.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.65 |
| 2025 | 2.42 |
| 2024 | 2.17 |
| 2023 | 1.905 |
| 2022 | 1.69 |
📈 Dividend Growth
Dividend growth is pivotal for income-focused investors as it signals a company's continuous ability to enhance shareholder returns. Broadcom's 3-year growth rate of approximately 12.71% and 5-year growth of about 12.63% demonstrate its stable dividend policy.
| Time | Growth |
|---|---|
| 3 years | 12.71% |
| 5 years | 12.63% |
The average dividend growth is 12.63% over 5 years. This shows moderate but steady dividend growth.
💼 Payout Ratio
Payout ratios demonstrate a company's dividend sustainability. Broadcom’s EPS-based payout ratio of 44.89% and FCF-based payout ratio of 38.72% indicate a well-balanced approach, ensuring that dividends are well-supported by earnings and free cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 44.89% |
| Free cash flow-based | 38.72% |
The payout ratios suggest that Broadcom prudently balances shareholder returns with capital reinvestment for growth.
🔍 Cashflow & Capital Efficiency
An assessment of cash flow and capital efficiency metrics reveals Broadcom's effective management in generating cash. Key figures like free cash flow and earnings yield, along with CAPEX and stock-based compensation ratios, highlight its operational efficacy.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 5.05% | 2.49% | 1.58% |
| Earnings Yield | 4.03% | 0.76% | 1.35% |
| CAPEX to Operating Cash Flow | 2.50% | 2.75% | 2.26% |
| Stock-based Compensation to Revenue | 6.06% | 11.13% | 11.85% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.50% | 97.25% | 97.74% |
Broadcom's cash generation and capital efficiency indicators support its capacity to sustain and potentially grow dividend payouts.
📊 Balance Sheet & Leverage Analysis
Analyzing the balance sheet reveals that Broadcom has maintained prudent financial discipline. Debt metrics like Debt-to-Equity and Current Ratio highlight its manageable leverage and liquidity positions.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity Ratio | 1.653 | 0.998 | 0.801 |
| Debt-to-Assets Ratio | 54.42% | 40.79% | 38.07% |
| Debt-to-Capital Ratio | 62.30% | 49.96% | 44.48% |
| Net Debt to EBITDA | 1.239 | 2.438 | 1.410 |
| Current Ratio | 2.815 | 1.174 | 1.705 |
| Quick Ratio | 2.559 | 1.068 | 1.583 |
| Financial Leverage | 3.037 | 2.448 | 2.105 |
Broadcom's figures reflect solid leverage control and liquidity management, sustaining its financial robustness amid expansionary efforts.
⚙️ Fundamental Strength & Profitability
Fundamentally, Broadcom demonstrates exceptional profitability with returns on equity and assets much higher than sector averages. Margin strengths underline its efficiency and resilience in competitive tech indulgences.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 58.70% | 8.71% | 28.45% |
| Return on Assets | 19.33% | 3.56% | 13.52% |
| Net Profit Margin | 39.31% | 11.43% | 36.20% |
| EBIT Margin | 46.68% | 26.89% | 40.60% |
| EBITDA Margin | 57.38% | 46.30% | 54.34% |
| Gross Margin | 68.93% | 63.03% | 67.77% |
| Research & Development to Revenue | 14.67% | 18.05% | 17.18% |
The robust performance across profitability measures positions Broadcom as both an innovative and profitable entity within its sector.
📉 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🏆 Rating
Broadcom Inc. showcases a robust dividend framework, characterized by stability, moderate growth, and sound financial backing. This aligns strongly with dividend-focused investing strategies, meriting a favorable recommendation for investors prioritizing both income and long-term capital appreciation.
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