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 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, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.