Broadcom Inc., formerly Broadcom Limited (AVGO), will raise its quarterly dividend by 51.4 percent to $2.65 per share in the fourth quarter of 2018.

The increased dividend is payable on December 28, 2018 to stockholders of record at the close of business on December 19, 2018.

A new annualized dividend of $10.60 per share yields 4.6% at a stock price of $228.56.

"Free cash flow from operations grew 50% in fiscal year 2018 to $8.2 billion. As a result, we are raising our target dividend by 51 percent to $2.65 per share per quarter for fiscal year 2019," said Tom Krause, CFO of Broadcom Inc. "Looking ahead for the year, we expect sustained revenue growth and improving operating leverage to accelerate cash generation from operations. Our capital allocation strategy remains unchanged for fiscal year 2019. We plan to return 50% of our prior fiscal year free cash flows to stockholders in the form of dividends and use the balance of our free cash flows to buy back stock and support additional acquisitions, while remaining focused on maintaining our investment grade credit rating."

Broadcom Inc. designs, develops and supplies semiconductor and infrastructure software solutions. The company develops semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor, or CMOS, based devices and analog III-V based products. Original equipment manufacturers (OEMs) or their contract manufacturers, and distributors typically account for the substantial majority of the company's semiconductor sales. Broadcom Inc., or Broadcom, is the successor to Broadcom Limited, a company organized under the laws of the Republic of Singapore, or Broadcom-Singapore, as a result of its redomiciliation to the United States on April 4, 2018.