Broadcom Inc. (NASDAQ:AVGO) Declares Dividend Increase – $0.59 Per Share

Broadcom Inc. (NASDAQ:AVGO) declared 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 1.31%. 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% annually over the last three years and has increased its dividend every year for the last 15 years. Broadcom has a payout ratio of 34.4% indicating that its dividend is sufficiently covered by earnings. Equities 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 %

AVGO opened at $180.66 on Friday. The firm has a market cap of $843.79 billion, a P/E ratio of 156.96, a PEG ratio of 2.15 and a beta of 1.13. The business’s fifty day simple moving average is $173.65 and its 200 day simple moving average is $163.86. Broadcom has a 52 week low of $104.15 and a 52 week high of $186.42. The company has a quick ratio of 0.94, a current ratio of 1.04 and a debt-to-equity ratio of 1.02.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.03. The company had revenue of $14.05 billion for the quarter, compared to analysts’ expectations of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. The firm’s revenue for the quarter was up 51.2% compared to the same quarter last year. During the same period last year, the company earned $0.98 EPS. As a group, equities research analysts anticipate that Broadcom will post 3.79 EPS for the current fiscal year.

Insider Buying and Selling

In other Broadcom news, insider Mark David Brazeal sold 20,280 shares of Broadcom stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $177.10, for a total transaction of $3,591,588.00. Following the sale, the insider now directly owns 399,460 shares in the company, valued at $70,744,366. The trade was a 4.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Hock E. Tan sold 50,000 shares of the stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $163.37, for a total value of $8,168,500.00. Following the transaction, the chief executive officer now owns 1,331,910 shares of the company’s stock, valued at approximately $217,594,136.70. This trade represents a 3.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 311,080 shares of company stock valued at $53,540,590 in the last quarter. Company insiders own 2.00% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. William Blair assumed coverage on Broadcom in a research report on Wednesday, September 18th. They set an “outperform” rating on the stock. Cantor Fitzgerald increased their price objective on shares of Broadcom from $200.00 to $225.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. Citigroup raised their target price on shares of Broadcom from $175.00 to $205.00 and gave the stock a “buy” rating in a research report on Tuesday. Rosenblatt Securities reaffirmed a “buy” rating and set a $240.00 price target on shares of Broadcom in a research report on Wednesday. Finally, The Goldman Sachs Group increased their price target on shares of Broadcom from $185.00 to $190.00 and gave the stock a “buy” rating in a research note on Friday, September 6th. Three research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $198.09.

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.