Broadcom Inc. (NASDAQ:AVGO) Declares $0.59 Quarterly Dividend

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) declared a quarterly dividend on Wednesday, June 4th, RTT News reports. Investors of record on Friday, June 20th will be paid a dividend of 0.59 per share by the semiconductor manufacturer on Monday, June 30th. This represents a $2.36 annualized dividend and a yield of 0.96%. The ex-dividend date is Friday, June 20th.

Broadcom has raised its dividend by an average of 13.4% annually over the last three years and has increased its dividend annually for the last 15 consecutive years. Broadcom has a payout ratio of 30.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Broadcom to earn $6.38 per share next year, which means the company should continue to be able to cover its $2.36 annual dividend with an expected future payout ratio of 37.0%.

Broadcom Trading Down 5.0%

NASDAQ:AVGO traded down $12.98 during trading hours on Friday, hitting $246.95. 41,055,118 shares of the company were exchanged, compared to its average volume of 30,998,721. The stock has a market capitalization of $1.16 trillion, a price-to-earnings ratio of 201.43, a price-to-earnings-growth ratio of 2.29 and a beta of 1.11. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98. Broadcom has a one year low of $128.50 and a one year high of $265.43. The company has a fifty day simple moving average of $203.73 and a 200 day simple moving average of $206.22.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. Broadcom had a return on equity of 28.00% and a net margin of 11.43%. The firm had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period last year, the business posted $10.96 EPS. The business's revenue was up 20.2% compared to the same quarter last year. Sell-side analysts expect that Broadcom will post 5.38 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of recent analyst reports. Morgan Stanley increased their price target on Broadcom from $260.00 to $270.00 and gave the stock an "overweight" rating in a report on Friday. Cowen reiterated a "buy" rating on shares of Broadcom in a report on Friday. Citigroup reiterated a "buy" rating and set a $276.00 price target (up from $210.00) on shares of Broadcom in a report on Tuesday. Oppenheimer increased their price target on Broadcom from $225.00 to $265.00 and gave the stock an "outperform" rating in a report on Friday, May 30th. Finally, Erste Group Bank upgraded Broadcom from a "hold" rating to a "buy" rating in a report on Thursday. Three research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and a consensus target price of $270.25.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 800 shares of Broadcom stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $230.19, for a total transaction of $184,152.00. Following the transaction, the director now owns 26,182 shares of the company's stock, valued at $6,026,834.58. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, April 11th. The stock was sold at an average price of $180.00, for a total transaction of $4,500,000.00. Following the transaction, the insider now directly owns 465,956 shares in the company, valued at approximately $83,872,080. This represents a 5.09% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 720,576 shares of company stock worth $131,249,694. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A hedge fund recently raised its stake in Broadcom stock. Revolve Wealth Partners LLC grew its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 10.4% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 7,997 shares of the semiconductor manufacturer's stock after buying an additional 756 shares during the quarter. Revolve Wealth Partners LLC's holdings in Broadcom were worth $1,854,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom announced that its Board of Directors has authorized a share buyback program on Monday, April 7th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

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.