Broadcom Inc. (NASDAQ:AVGO) Declares Quarterly Dividend of $0.65

Key Points

• Broadcom declared a quarterly dividend of $0.65 per share (annualized $2.60) payable March 31 to holders of record March 23, a ~0.8% yield, and the company has raised its dividend every year for the last 15 years with a payout ratio (~33%) that appears comfortably covered by earnings.
• Broadcom beat the quarter with $2.05 EPS versus $2.03 expected and $19.31B in revenue (vs. $19.10B), with revenue up 29.5% year-over-year and strong profitability metrics (ROE ~38.6%, net margin ~36.6%).
• Insiders have been net sellers recently—CEO Hock E. Tan sold 70,000 shares and insiders disposed of roughly 528,970 shares (~$177.15 million) in the last 90 days—while institutional ownership remains high at about 76.4%, with major funds increasing stakes.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) announced a quarterly dividend on Tuesday, March 3rd, NASDAQ Dividends reports. Investors of record on Monday, March 23rd will be given a dividend of 0.65 per share by the semiconductor manufacturer on Tuesday, March 31st. This represents a c) annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, March 23rd.

Broadcom has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 15 years. Broadcom has a dividend payout ratio of 33.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Broadcom to earn $6.38 per share next year, which means the company should continue to be able to cover its $2.60 annual dividend with an expected future payout ratio of 40.8%.

Broadcom Stock Performance

Broadcom stock opened at $310.51 on Friday. Broadcom has a twelve month low of $138.10 and a twelve month high of $414.61. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock's 50 day moving average is $330.43 and its 200 day moving average is $344.98. The company has a market capitalization of $1.47 trillion, a P/E ratio of 60.65, a PEG ratio of 0.69 and a beta of 1.22.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.Broadcom's revenue for the quarter was up 29.5% on a year-over-year basis. During the same period last year, the company earned $1.60 EPS. On average, equities research analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Insider Activity

In other Broadcom news, CEO Hock E. Tan sold 70,000 shares of Broadcom stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the completion of the sale, the chief executive officer owned 132,836 shares of the company's stock, valued at approximately $46,133,942.80. The trade was a 34.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider S. Ram Velaga sold 38,841 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the completion of the transaction, the insider owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 528,970 shares of company stock valued at $177,150,321. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

A number of hedge funds have recently modified their holdings of AVGO. Vanguard Group Inc. increased its holdings in shares of Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares in the last quarter. State Street Corp increased its holdings in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after buying an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Broadcom during the 4th quarter valued at about $24,252,196,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

About Broadcom

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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