Benzinga and Yahoo Finance LLC may earn commissions or revenue from certain articles through the links below.
Broadcom Inc. (NASDAQ:AVGO), one of the large-cap tech stocks benefiting from the AI ​​boom, recently reported impressive fiscal second-quarter results. The company reported revenue of $12.49 billion, beating analyst estimates of $12.03 billion, and earnings per share (EPS) of $10.96, beating analysts’ consensus estimate. analysts of 10.84 dollars.
The stock has rebounded strongly since the start of the AI ​​boom, gaining 200% since January 2023 and 50% since the start of the year. Broadcom Inc’s market capitalization also increased to $804.05 billion, making it the 11th largest company in the world. While analysts recommend Broadcom Inc as one of the top AI growth stocks, dividend investors may wonder if it is a good income stock.
When determining the quality of a dividend stock, payment history is a key factor. High-income stocks have a long history of paying consistent and growing dividends. Broadcom Inc is a dividend producer with 11 years of consistent and increasing quarterly dividends.
The stock has maintained a compound annual growth rate (CAGR) of 12.87% over the past three years, 17.49% over the past five years, and 35.28% over the past decade. Broadcom Inc currently pays a dividend yield of 1.21%, which is higher than the industry average yield of 1.025% but lower than the S&P 500 long-term average of 1.85%.
Although the company’s 53% payout ratio and strong balance sheet prove dividend sustainability, its low dividend yield could make it less attractive to income-oriented investors. Broadcom Inc might be a good bet for those looking for capital gains, but it may not be the best choice for investors who rely on dividend income.
Income investors should generally look for stable companies with a history of superior dividend payments and yields above 5%. However, for those looking to invest in dividend growth, Broadcom Inc’s consistent and growing dividends could make it a solid choice for long-term portfolio growth.
Are you missing out on higher returns?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, the Ascent Income Fund of EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is an essential investment vehicle for income-focused investors. New investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This item Should Dividend Investors Take Advantage of Broadcom Inc’s Tailwind? originally appeared on Benzinga.com
