Broadcom (NASDAQ: AVGO), a key semiconductor company that competes with Nvidia (NASDAQ: NVDA) across the artificial intelligence (AI) and data-center infrastructure landscape, is set to pay one of the first dividends of 2026 in March.
The company’s next quarterly dividend is estimated at $0.65 per share, with an expected payment date of March 27, 2026. The payout is unchanged from the dividend paid on December 31, 2025, signaling stability in Broadcom’s shareholder return policy.
At this rate, an investor holding 100 shares of Broadcom stock will earn $65 in dividend income from the March payment, excluding taxes.
Based on a recent share price of about $331.30, the dividend implies a yield of roughly 0.78%. Broadcom pays dividends quarterly and currently has a forward payout ratio of about 18.2%, indicating the dividend is conservatively funded by earnings and free cash flow.
Notably, the firm has increased its dividend for 16 consecutive years, a strong track record within the semiconductor sector, and its average post-dividend price recovery time stands at just under nine days.
Compared with the broader technology sector’s average yield of around 1.37%, Broadcom’s yield is lower, reflecting its positioning as a growth-focused stock rather than a high-income play.
From a stock price perspective, Broadcom shares have experienced volatility alongside the wider semiconductor market.
AVGO fundamentals
Overall, Broadcom is emerging as a compelling buy as demand for custom AI chips accelerates across hyperscalers. Shipments of AI server compute ASICs are expected to triple between 2024 and 2027, driven by expanding Google TPU infrastructure for Gemini, continued scaling of AWS Trainium clusters, and rising volumes from Meta Platforms.
As this market shifts away from a landscape dominated by Google and Amazon Web Services, Broadcom has positioned itself as a key beneficiary of a more diversified AI compute ecosystem by 2027.
To this end, Wall Street sentiment has turned increasingly supportive, with JPMorgan recently naming Broadcom a top tech pick, highlighting its broad exposure across wireless, broadband, networking, and storage.
Wells Fargo upgraded the stock to ‘Overweight’ following Broadcom’s $4.5 billion senior note issuance, while Goldman Sachs reiterated its preference for the company alongside Nvidia, pointing to Broadcom’s strong leverage to AI infrastructure spending and long-term networking technology trends.
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