Broadcom’s dividend yield stands at 0.68% but has grown nearly 13 times in 10 years, reflecting strong underlying business performance.
Broadcom’s annual dividend of $2.60 per share yields just 0.68% at Friday’s closing price of $381.92, translating to $68 annually on a $10,000 investment. The modest yield belies the company’s aggressive dividend growth strategy over the past decade.
The quarterly payout has surged from a split-adjusted $0.05 in mid-2016 to $0.65 today, a nearly 13-fold increase. This growth equates to an annualized rate of 29%, though the pace has moderated to 12.5% over the past five years. The latest increase, announced in December, was 10%.
Despite the slower recent growth, Broadcom’s dividend expansion underscores its financial strength. The company has raised dividends for 15 consecutive years, including a one-time doubling in 2016.