June 19, 2026 a 07:46 am
AVGO: Dividend Analysis - Broadcom Inc.
Broadcom Inc. exhibits a strong dividend profile with a combination of stability and growth potential. With a solid foundation of a 17-year dividend history and no recent cuts or suspensions, the company showcases a reliable commitment to shareholders. While the current dividend yield is modest at 0.62%, the company’s consistent growth in dividends points to a long-term vision. The dividend growth rates over the last 3 and 5 years further underline a robust strategy aimed at increasing shareholder value.
📊 Overview
The company operates within its sector with competitiveness and reliability. The following data provides a snapshot of its current dividend metrics:
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend yield | 0.62% |
| Current dividend per share | 2.36 USD |
| Dividend history | 17 years |
| Last cut or suspension | None |
📈 Dividend History
The importance of a considerable dividend history cannot be understated. It reflects the company's consistent ability to return profits to its investors. Broadcom's track record over nearly two decades in maintaining and growing dividends serves as a robust indicator of financial health.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.30 |
| 2025 | 2.42 |
| 2024 | 2.170 |
| 2023 | 1.905 |
| 2022 | 1.69 |
📉 Dividend Growth
Analyzing the dividend growth offers insights into the company’s commitment to increasing shareholder returns. A steady growth rate is indicative of both profitability and confidence in future earnings. Broadcom showcases a positive pattern with:
| 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 offer a peek into the sustainability of dividends. Here are Broadcom's key metrics in this realm:
| Key figure | Ratio |
|---|---|
| EPS-based | 38.29% |
| Free cash flow-based | 34.34% |
With an EPS payout ratio of 38.29% and a free cash flow payout ratio of 34.34%, Broadcom shows a conservative approach, ensuring dividends are well covered and not stretched beyond earnings capacity.
🗣️ Cashflow & Capital Efficiency
Studying free cash flow and capital efficiency metrics provides valuable insights into how effectively a company manages its resources.
| Metric | 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 | 97.54% | 97.25% | 97.74% |
Broadcom’s efficient use of capital and cash flow stability enhances its potential to sustain dividends and pursue growth opportunities effectively.
📊 Balance Sheet & Leverage Analysis
A strong balance sheet underscores a company's capacity to manage its debt and other liabilities over time, which is crucial for long-term stability.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.65 | 0.99 | 0.80 |
| Debt-to-Assets | 54.42% | 40.79% | 38.07% |
| Debt-to-Capital | 62.30% | 49.96% | 44.48% |
| Net Debt to EBITDA | 1.24 | 2.44 | 1.41 |
| Current Ratio | 2.82 | 1.17 | 1.71 |
| Quick Ratio | 2.56 | 1.07 | 1.58 |
| Financial Leverage | 3.04 | 2.45 | 2.10 |
Broadcom’s leverage ratios indicate prudent management of financial obligations, reducing risk associated with debt while maintaining liquidity.
📈 Fundamental Strength & Profitability
Metrics related to profitability and fundamental strength are vital for assessing a company's ability to generate profits effectively.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 58.70% | 8.71% | 28.45% |
| Return on Assets | 19.33% | 3.56% | 13.52% |
| Margins: Net | 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% |
Broadcom demonstrates substantial profitability bolstered by high margins and efficient utilization of resources, reflecting a strong competitive position.
📉 Price Development
📊 Dividend Scoring System
| Criteria | Score out of 5 | Visual Score |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 32/40
✅ Rating
Broadcom Inc. presents a compelling dividend profile with a strong history and growth potential. The company’s stable payout ratios combined with efficient cash management and strong financial metrics position it as an attractive choice for income-focused investors. While the dividend yield is relatively low, the consistency in growth and the security of payouts make this a valuable addition to a diversified portfolio.
Smart Data Insight
Master the Perfect Entry & Exit for this Stock
Don't leave your profits to chance. Historically, this stock follows specific seasonal patterns that institutional traders use to maximize returns.
- ✅ Identify the "Golden Buying Window"
- ✅ Avoid high-risk correction cycles
- ✅ Backtested data from the last 20+ years