Broadcom Inc. (NASDAQ:AVGO) Raises Dividend to $0.59 Per Share

Broadcom Inc. (NASDAQ:AVGO) announced a quarterly dividend on Thursday, December 12th,RTT News reports. Investors of record on Monday, December 23rd will be given a dividend of 0.59 per share by the semiconductor manufacturer on Tuesday, December 31st. This represents a $2.36 annualized dividend and a dividend yield of 1.31%. This is a boost from Broadcom’s previous quarterly dividend of $0.53.

Broadcom has increased its dividend payment by an average of 12.6% per year over the last three years and has increased its dividend every year for the last 15 years. Broadcom has a dividend payout ratio of 34.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Broadcom to earn $5.15 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 41.2%.

Broadcom Stock Down 1.4 %

Shares of NASDAQ:AVGO opened at $180.66 on Friday. The company’s fifty day moving average is $173.65 and its two-hundred day moving average is $163.86. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.94 and a current ratio of 1.04. Broadcom has a 1-year low of $104.15 and a 1-year high of $186.42. The stock has a market capitalization of $843.79 billion, a price-to-earnings ratio of 156.96, a price-to-earnings-growth ratio of 2.15 and a beta of 1.13.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.03. The firm had revenue of $14.05 billion for the quarter, compared to analyst estimates of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. Broadcom’s quarterly revenue was up 51.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.98 earnings per share. Equities analysts anticipate that Broadcom will post 3.79 EPS for the current year.

Insider Activity

In other Broadcom news, insider Charlie B. Kawwas sold 15,950 shares of the stock in a transaction on Friday, October 11th. The shares were sold at an average price of $181.44, for a total transaction of $2,893,968.00. Following the transaction, the insider now directly owns 737,330 shares of the company’s stock, valued at $133,781,155.20. This represents a 2.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Hock E. Tan sold 50,000 shares of the business’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $163.37, for a total value of $8,168,500.00. Following the completion of the sale, the chief executive officer now directly owns 1,331,910 shares of the company’s stock, valued at $217,594,136.70. This represents a 3.62 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 311,080 shares of company stock worth $53,540,590 in the last ninety days. Corporate insiders own 2.00% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have commented on AVGO shares. JPMorgan Chase & Co. raised their price target on shares of Broadcom from $200.00 to $210.00 and gave the company an “overweight” rating in a research note on Friday, September 6th. UBS Group lifted their target price on Broadcom from $170.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, November 4th. TD Cowen raised Broadcom to a “strong-buy” rating in a research note on Monday, September 16th. Cantor Fitzgerald raised their price target on Broadcom from $200.00 to $225.00 and gave the company an “overweight” rating in a report on Tuesday, October 8th. Finally, Hsbc Global Res raised shares of Broadcom to a “hold” rating in a report on Tuesday, December 3rd. Three investment analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $198.09.

Broadcom Company Profile

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.