Broadcom Inc. (NASDAQ:AVGO) Plans Dividend Increase – $0.53 Per Share

Broadcom Inc. (NASDAQ:AVGO) declared a quarterly dividend on Thursday, September 5th, RTT News reports. Stockholders of record on Thursday, September 19th will be given a dividend of 0.53 per share by the semiconductor manufacturer on Monday, September 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.39%. This is an increase from Broadcom’s previous quarterly dividend of $0.53.

Broadcom has increased its dividend payment by an average of 12.6% annually over the last three years and has increased its dividend every year for the last 14 years. Broadcom has a dividend payout ratio of 34.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Broadcom to earn $4.90 per share next year, which means the company should continue to be able to cover its $2.10 annual dividend with an expected future payout ratio of 42.9%.

Broadcom Price Performance

AVGO stock traded down $1.30 during midday trading on Thursday, reaching $152.82. 25,509,773 shares of the company’s stock traded hands, compared to its average volume of 31,057,582. The company has a 50-day simple moving average of $190.06 and a two-hundred day simple moving average of $155.59. The company has a quick ratio of 1.16, a current ratio of 1.25 and a debt-to-equity ratio of 1.02. Broadcom has a 1-year low of $79.51 and a 1-year high of $185.16. The company has a market cap of $711.36 billion, a price-to-earnings ratio of 6.63, a PEG ratio of 2.87 and a beta of 1.16.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, September 5th. The semiconductor manufacturer reported $1.24 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.04. Broadcom had a net margin of 24.10% and a return on equity of 35.82%. The business had revenue of $13.07 billion during the quarter, compared to analyst estimates of $12.98 billion. During the same quarter last year, the business posted $0.95 earnings per share. Broadcom’s revenue for the quarter was up 47.3% compared to the same quarter last year. On average, analysts anticipate that Broadcom will post 3.74 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Evercore ISI raised their target price on shares of Broadcom from $162.00 to $201.00 and gave the company an “outperform” rating in a research note on Thursday, June 13th. TD Cowen raised their price objective on shares of Broadcom from $175.00 to $210.00 and gave the company a “buy” rating in a research note on Tuesday, July 16th. Jefferies Financial Group upped their target price on shares of Broadcom from $155.00 to $205.00 and gave the company a “buy” rating in a research report on Thursday, June 13th. Melius started coverage on Broadcom in a report on Monday, June 3rd. They issued a “buy” rating and a $185.00 price objective for the company. Finally, Melius Research initiated coverage on Broadcom in a research note on Monday, June 3rd. They issued a “buy” rating and a $185.00 target price on the stock. Two investment analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $255.11.

Insiders Place Their Bets

In other Broadcom news, CEO Hock E. Tan sold 7,502 shares of the business’s stock in a transaction that occurred on Thursday, July 11th. The stock was sold at an average price of $1,705.95, for a total value of $12,798,036.90. Following the sale, the chief executive officer now owns 138,191 shares in the company, valued at approximately $235,746,936.45. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other Broadcom news, CEO Hock E. Tan sold 7,502 shares of Broadcom stock in a transaction on Thursday, July 11th. The shares were sold at an average price of $1,705.95, for a total value of $12,798,036.90. Following the sale, the chief executive officer now directly owns 138,191 shares in the company, valued at approximately $235,746,936.45. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Justine Page sold 2,540 shares of the stock in a transaction dated Thursday, June 20th. The stock was sold at an average price of $175.03, for a total transaction of $444,566.04. Following the transaction, the director now owns 27,480 shares of the company’s stock, valued at $4,809,714.48. The disclosure for this sale can be found here. Corporate insiders own 2.00% of the company’s stock.

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.