Investors in American semiconductor giant Broadcom (NASDAQ: AVGO) are set to be rewarded when the company continues its tradition of dividend payments on September 30.
According to the company, shareholders of record will receive $0.59 per share, the same amount as the previous payout on June 30, 2025.
Broadcom maintains a forward dividend payout ratio of 28.73%, leaving room for reinvestment while still providing shareholders with a return. Based on the declared dividend, AVGO currently offers a yield of 0.79%, below the technology sector’s average yield of 1.37%.
For income-seeking investors, Broadcom has now increased its dividend for 15 consecutive years, ranking as a reliable dividend growth stock.
At the current dividend rate, an investor holding 100 shares of Broadcom will earn $59 in cash dividends this quarter. On an annualized basis, that translates to $236 in dividend income.
Regarding the stock performance, at the close of the last trading session, AVGO shares were valued at $297.39, down 3.65%, though the stock has still rallied over 28% year-to-date.
AVGO stock fundamentals
Looking ahead, Broadcom is strengthening its growth outlook with major product updates and strong financial performance. For instance, on August 26, the technology firm announced that VMware Private AI Services will become a standard feature in VMware Cloud Foundation 9.0, making the platform AI-native.
Broadcom also launched VMware Tanzu Data Intelligence, a data lakehouse for analytics and AI development, along with VMware Cloud Foundation Advanced Cyber Compliance to bolster security for regulated industries.
Adoption is accelerating, with nine of the top 10 Fortune 500 companies already committed to VMware Cloud Foundation and more than 100 million cores licensed worldwide.
From a fundamentals perspective, the company’s earnings per share are projected to grow 36.3% this year, far ahead of the semiconductor industry’s 7.5% average. Cash flow growth is also strong at 36.1% year-over-year, compared with an industry decline of 4.3%.
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