Broadcom Inc. to Issue Quarterly Dividend of $4.60 (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) announced a quarterly dividend on Wednesday, August 30th, RTT News reports. Stockholders of record on Thursday, September 21st will be given a dividend of 4.60 per share by the semiconductor manufacturer on Friday, September 29th. This represents a $18.40 annualized dividend and a dividend yield of 2.16%. The ex-dividend date is Wednesday, September 20th.

Broadcom has increased its dividend by an average of 14.7% per year over the last three years and has increased its dividend annually for the last 13 consecutive years. Broadcom has a dividend payout ratio of 39.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Broadcom to earn $40.88 per share next year, which means the company should continue to be able to cover its $18.40 annual dividend with an expected future payout ratio of 45.0%.

Broadcom Stock Performance

Shares of NASDAQ AVGO opened at $850.00 on Tuesday. The firm’s fifty day moving average is $875.05 and its two-hundred day moving average is $763.54. Broadcom has a 52-week low of $415.07 and a 52-week high of $923.67. The company has a market cap of $350.83 billion, a P/E ratio of 26.14, a P/E/G ratio of 1.78 and a beta of 1.10. The company has a debt-to-equity ratio of 1.73, a quick ratio of 2.25 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Thursday, August 31st. The semiconductor manufacturer reported $10.54 EPS for the quarter, topping analysts’ consensus estimates of $10.43 by $0.11. The company had revenue of $8.85 billion for the quarter, compared to the consensus estimate of $8.85 billion. Broadcom had a return on equity of 74.31% and a net margin of 39.25%. The firm’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the previous year, the business earned $9.07 earnings per share. As a group, analysts anticipate that Broadcom will post 37.88 EPS for the current fiscal year.

Insider Buying and Selling

In other Broadcom news, Director Eddy W. Hartenstein sold 1,500 shares of the company’s stock in a transaction dated Tuesday, September 12th. The shares were sold at an average price of $855.68, for a total value of $1,283,520.00. Following the transaction, the director now directly owns 9,123 shares in the company, valued at approximately $7,806,368.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Director Eddy W. Hartenstein sold 1,500 shares of the business’s stock in a transaction that occurred on Tuesday, September 12th. The stock was sold at an average price of $855.68, for a total value of $1,283,520.00. Following the completion of the sale, the director now owns 9,123 shares in the company, valued at $7,806,368.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Check Kian Low acquired 11,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 6th. The stock was purchased at an average cost of $872.03 per share, for a total transaction of $9,592,330.00. Following the purchase, the director now owns 15,951 shares of the company’s stock, valued at $13,909,750.53. The disclosure for this purchase can be found here. 2.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Broadcom

Hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new position in shares of Broadcom in the 4th quarter worth approximately $2,222,676,000. Moneta Group Investment Advisors LLC boosted its stake in Broadcom by 122,794.1% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 3,667,161 shares of the semiconductor manufacturer’s stock valued at $2,050,420,000 after acquiring an additional 3,664,177 shares in the last quarter. Providence Capital Advisors LLC boosted its stake in Broadcom by 49,919.1% in the first quarter. Providence Capital Advisors LLC now owns 2,437,432 shares of the semiconductor manufacturer’s stock valued at $3,799,000 after acquiring an additional 2,432,559 shares in the last quarter. State Street Corp grew its holdings in Broadcom by 5.0% in the first quarter. State Street Corp now owns 16,632,123 shares of the semiconductor manufacturer’s stock worth $10,670,149,000 after purchasing an additional 794,832 shares during the last quarter. Finally, Morgan Stanley increased its position in shares of Broadcom by 12.5% during the fourth quarter. Morgan Stanley now owns 5,878,874 shares of the semiconductor manufacturer’s stock worth $3,287,056,000 after purchasing an additional 651,014 shares in the last quarter. 78.81% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research reports. Needham & Company LLC increased their target price on Broadcom from $33.00 to $44.00 in a research report on Friday, September 1st. Wolfe Research assumed coverage on shares of Broadcom in a research note on Wednesday, July 19th. They issued a “market perform” rating for the company. Truist Financial upped their target price on shares of Broadcom from $942.00 to $995.00 and gave the company a “buy” rating in a research report on Friday, September 8th. Rosenblatt Securities lifted their price target on Broadcom from $900.00 to $1,000.00 in a research report on Friday, September 1st. Finally, Piper Sandler boosted their price objective on Broadcom from $830.00 to $925.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 29th. Five investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $846.14.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.