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

Key Points

• Broadcom declared a quarterly dividend of $0.65 per share, payable September 30 to shareholders of record on September 21. The dividend implies an annualized payout of $2.60 and a 0.7% yield, with a 15-year record of annual increases.
• Broadcom’s latest quarterly results exceeded expectations, with adjusted EPS of $3.32 versus the $3.22 consensus and revenue of $29.59 billion versus $29.24 billion. Revenue increased 85.5% year over year.
• The stock opened at $367.24, while insiders sold 61,644 shares worth approximately $24 million over the past three months; institutional investors own 76.43% of Broadcom’s outstanding shares.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) declared a quarterly dividend on Wednesday, September 2nd. Stockholders of record on Monday, September 21st will be paid a dividend of 0.65 per share by the semiconductor manufacturer on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st.

Broadcom has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 15 consecutive years. Broadcom has a payout ratio of 33.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Broadcom to earn $17.54 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 14.8%.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $367.24 on Thursday. Broadcom has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a fifty day moving average price of $384.15 and a 200 day moving average price of $377.14. The firm has a market cap of $1.75 trillion, a PE ratio of 61.21, a PEG ratio of 0.71 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom's quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.69 earnings per share. Research analysts predict that Broadcom will post 10.24 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock worth $24,016,214 in the last three months. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently added to or reduced their stakes in the business. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after acquiring an additional 66 shares in the last quarter. Networth Advisors LLC lifted its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the period. SWAN Capital LLC boosted its stake in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 55 shares in the last quarter. Harborfront Financial Group LLC bought a new position in Broadcom during the second quarter worth $38,000. Finally, Cherry Tree Wealth Management LLC grew its holdings in Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after purchasing an additional 40 shares during the period. 76.43% of the stock is currently owned by institutional investors.

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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