Broadcom Inc. (NASDAQ:AVGO) to Issue Quarterly Dividend of $0.59

Broadcom Inc. (NASDAQ:AVGO) announced a quarterly dividend on Thursday, December 12th,RTT News reports. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.05%. The ex-dividend date is Monday, December 23rd. 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% annually over the last three years and has raised its dividend every year for the last 15 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 $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 Performance

AVGO opened at $224.80 on Friday. Broadcom has a twelve month low of $104.15 and a twelve month high of $228.70. The firm has a market capitalization of $1.05 trillion, a PE ratio of 182.76, a PEG ratio of 2.15 and a beta of 1.13. The company has a current ratio of 1.04, a quick ratio of 0.94 and a debt-to-equity ratio of 1.02. The firm’s 50-day moving average price is $174.61 and its 200 day moving average price is $164.45.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.39 by $0.03. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The business had revenue of $14.05 billion during the quarter, compared to analyst estimates of $14.07 billion. During the same period in the prior year, the business earned $0.98 earnings per share. The business’s revenue was up 51.2% compared to the same quarter last year. As a group, sell-side analysts expect that Broadcom will post 3.79 EPS for the current fiscal year.

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 20,280 shares of Broadcom stock in a transaction on Monday, October 7th. The shares were sold at an average price of $177.10, for a total value of $3,591,588.00. Following the transaction, the insider now directly owns 399,460 shares in the company, valued at approximately $70,744,366. The trade was a 4.83 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Hock E. Tan sold 50,000 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer now directly owns 1,331,910 shares of the company’s stock, valued at $217,594,136.70. The trade was a 3.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 311,080 shares of company stock worth $53,540,590 in the last 90 days. 2.00% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. UBS Group lifted their price target on shares of Broadcom from $170.00 to $200.00 and gave the company a “buy” rating in a research report on Monday, November 4th. Jefferies Financial Group lifted their target price on Broadcom from $205.00 to $225.00 and gave the company a “buy” rating in a research report on Friday. Cantor Fitzgerald increased their price target on Broadcom from $200.00 to $225.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. Mizuho boosted their price objective on shares of Broadcom from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Monday, October 14th. Finally, JPMorgan Chase & Co. upped their target price on shares of Broadcom from $210.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday. Three research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $220.33.

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.