Broadcom just did a sneaky bonus dividend hike

Quarterly dividend up 1% to $0.53 per share, bigger hike expected in Q4 of 2024

Dividend hero Broadcom (AVGO), the company known for its unmatched annual double digit dividend hikes, just announced a 1% increase in the quarterly dividend, from 52.5 cents to 53 cents quarterly.

This increase comes after the big stock split (10 for 1) that was done on July 15, 2024. Because of this stock split the $5.25 per share became a $0.525 per share quarterly dividend. Broadcom apparently doesn’t like to pay dividends in half cents, so that almost certainly explains the small increase to round the quarterly dividend back to whole cents.

On September 5, 2024, The Company's Board of Directors has approved a quarterly cash dividend of $0.53 per share. The dividend is payable on September 30, 2024 to stockholders of record at the close of business.

Because of the (extra) 1% dividend hike YTD the 5 year CAGR for Broadcom drops to 10.3%. This percentage will most likely be much higher later this year.

This 1% dividend hike will most likely be followed by a bigger (double digit) increase early December since Broadcom announced double digit hikes every year in the last 13 years (see table below).

Analysts on average expect an additional dividend hike of at least 9.4% to $0.58 quarterly per share this December for Broadcom. Based on the last couple of years it is more likely that they will do another double digit increase. We (team Dividend Hike) is aiming for a 13.2% hike to $0.60 quarterly per share by Broadcom, which is on top of this 1% hike just announced.

At a stock price of $152.82 the dividend yield for Broadcom is 1.4%. Expect a lower stock price today (the stock is down 8% premarket) following the Q3 earnings that were published yesterday. Broadcom lifted its annual AI revenue outlook, reported better than expected Q3 results, but also came with a soft quarterly guidance for Q4.

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Broadcom has now raised its dividend for 14 consecutive years with a double digit hike in 13 of these 14 years, which will likely be 14/14 with a second hike expected in a few months.

Broadcom Inc. designs, develops and supplies semiconductor and infrastructure software solutions. The company operates through two segments: semiconductor solutions and infrastructure software. Broadcom's product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. The company's solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation. Broadcom Inc., or Broadcom, is the successor to Broadcom Limited, the successor to Avago Technologies Limited following Avago’s acquisition of Broadcom Corporation (BRCM) on February 1, 2016. Broadcom Inc completed its acquisition of the Symantec Enterprise Security business on November 4, 2019. Also in 2019, Broadcom completed the acquisition of CA Inc.

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.