Wireless chipmaker Broadcom Corporation (
) late Tuesday posted better-than-expected fourth quarter earnings
and raised its quarterly dividend payout by 11%.
The Irvine, CA-based company reported fourth quarter net income
of $254 million, or 45 cents per share, compared with $266 million,
or 47 cents per share, in the year-ago period. Excluding one-time
items, adjusted profit was 68 cents per share.
Revenue fell 6% from last year to $1.82 billion.
On average, Wall Street analysts expected a smaller profit of 64
cents per share, on slighly lower revenue of $1.81 billion.
In a separate announcement, BRCM said its board authorized an
11% raise in its quarterly dividend payout. The new dividend of 10
cents per share (up from 9 cents) will be paid on March 5 to
shareholders of record as of Feb. 17.
Broadcom shares rose $1.25, or +3.6%, in premarket trading
The Bottom Line
Shares of Broadcom (
) will now have a 1.16% dividend yield, based on the higher
dividend payout and last night's closing stock price of $34.35. The
stock has technical support in the $30-$31 price area. If the
shares can firm up, we see overhead resistance around the $36-$38
Broadcom Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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