American semiconductor giant Broadcom (NASDAQ: AVGO) will pay its dividend on June 27, continuing its impressive streak of rewarding shareholders.
Notably, the stock has been on a strong upward trajectory in recent months, with expectations for further gains ahead of its Q1 2025 earnings report.
At the close of the last trading session, AVGO was valued at $242.07, up 45% over the past six months and more than 22% in just the last month.
For income-focused investors, Broadcom’s next estimated dividend stands at $0.59 per share, in line with the previous payout made on March 31, 2025. This means that shareholders holding 100 shares can expect a dividend payment of $59.00.
Importantly, the company has maintained a consistent quarterly dividend schedule and has achieved 15 consecutive years of dividend increases.
Broadcom’s forward payout ratio is currently 30.16%, indicating a balanced strategy between returning capital to shareholders and reinvesting in growth.
AVGO stock fundamentals
Looking ahead, Broadcom is scheduled to announce its quarterly earnings for the quarter ending April on June 5.
To this end, Wall Street is anticipating another strong performance, with analysts projecting $4.4 billion in AI-related sales. This follows a 77% year-over-year surge in AI revenue last quarter when total revenue climbed 25% to $14.9 billion, and shares jumped 8.6%.
This quarter, Broadcom is expected to report $15 billion in revenue and a 43% increase in earnings per share to $1.57.
The company’s software division is also showing impressive growth, with revenue up 47% last quarter to $6.7 billion, driven partly by its $61 billion acquisition of VMware.
While AI continues to be a key driver of Broadcom’s momentum, it’s worth noting that a significant portion of the company’s revenue still comes from non-AI segments, leaving it somewhat exposed to broader market cycles.
Despite these varied sentiments, the stock remains a compelling pick for income-chasing investors.
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