Despite ongoing losses in 2025, semiconductor giant Broadcom (NASDAQ: AVGO) is giving long-term investors a reason to stay optimistic, thanks to its continued commitment to dividend payouts.
Year-to-date, AVGO has dropped over 18%, currently trading at $188.67, after closing the last session down 3%. This decline comes after a strong rally in the past year, fueled by Broadcom’s role in the booming artificial intelligence (AI) sector.
However, the stock’s recent struggles can be attributed to broader market weakness, which stems from uncertainty surrounding President Donald Trump’s trade policies.
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Next Broadcom dividend payment
For income-chasing investors, Broadcom is among the notable reliable bets with a consistent history of dividend rewards. To this end, the firm’s next dividend is scheduled for March 31, 2025, for shareholders with stock by the ex-dividend date of March 20, 2025.
In the upcoming payout, the company’s dividend remains unchanged at $0.5900 per share, with a ratio of 30.14%. Additionally, Broadcom boasts an impressive 15-year streak of dividend increases, making it an ideal choice for income investors with a yield of 1.25%.
In this case, investors who own 1,000 shares of Broadcom will receive $590 in dividend income for this quarter, while an investor with 500 shares will earn $295.
The next dividend payment comes after the American semiconductor giant recorded impressive quarterly revenues. During the Q1 2025 report, Broadcom recorded adjusted earnings per share of $1.60, beating the $1.49 estimate and revenue of $14.92 billion, surpassing the $14.61 billion forecast.
AI continues to be a major growth driver, with related revenue reaching $4.1 billion, up 77% year-over-year. Broadcom supplies components for Google’s custom AI chips and networking solutions for large-scale AI systems.
Meanwhile, Broadcom’s infrastructure software division, boosted by the VMware acquisition, delivered $6.7 billion in revenue, marking a 47% annual increase. This segment has become a vital pillar of Broadcom’s business, complementing its semiconductor operations.
Wall Street bullish on AVGO stock
Wall Street remains optimistic about Broadcom’s long-term outlook, especially after the impressive earnings report.
As reported by Finbold, Morgan Stanley’s Joseph Moore lowered his Broadcom price target from $265 to $246 but reaffirmed his ‘Strong Buy’ rating. He pointed to potential regulatory risks from DeepSeek’s impact, leading to a cautious stance on AI-exposed semiconductor stocks.
Barclays’ Tom O’Malley maintained his ‘Overweight’ rating and raised his AVGO price target from $205 to $260. According to Malley, Broadcom’s strength in AI-related technologies, particularly its serializers and deserializers, were the main reasons for the upgrade.
Mizuho’s Vijay Rakesh also reiterated his ‘Buy’ rating while lifting his 12-month price target from $245 to $260. He emphasized Broadcom’s leading 13.49% weighting in the PHLX Semiconductor Index, reinforcing its significance in the broader chip sector alongside Nvidia.
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