Broadcom (AVGO) Declares $4.60 Dividend
Broadcom said on March 2, 2023 that its board of directors declared a regular quarterly dividend of $4.60 per share ($18.40 annualized). Previously, the company paid $4.60 per share.
Shares must be purchased before the ex-div date of March 21, 2023 to qualify for the dividend. Shareholders of record as of March 22, 2023 will receive the payment on March 31, 2023.
At the current share price of $632.76 / share, the stock's dividend yield is 2.91%. Looking back five years and taking a sample every week, the average dividend yield has been 3.42%, the lowest has been 2.43%, and the highest has been 6.93%. The standard deviation of yields is 0.66 (n=236).
The current dividend yield is 0.78 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.60. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.
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Analyst Price Forecast Suggests 5.69% Upside
As of March 4, 2023, the average one-year price target for Broadcom is $668.75. The forecasts range from a low of $545.40 to a high of $813.75. The average price target represents an increase of 5.69% from its latest reported closing price of $632.76.
The projected annual revenue for Broadcom is $35,900MM, an increase of 4.32%. The projected annual non-GAAP EPS is $41.57.
What is the Fund Sentiment?
There are 3432 funds or institutions reporting positions in Broadcom. This is an increase of 122 owner(s) or 3.69% in the last quarter. Average portfolio weight of all funds dedicated to AVGO is 0.79%, an increase of 7.57%. Total shares owned by institutions increased in the last three months by 8.18% to 421,924K shares. The put/call ratio of AVGO is 1.19, indicating a bearish outlook.
What are large shareholders doing?
Capital International Investors holds 30,225K shares representing 7.25% ownership of the company. In it's prior filing, the firm reported owning 29,750K shares, representing an increase of 1.57%. The firm increased its portfolio allocation in AVGO by 17.72% over the last quarter.
Capital World Investors holds 29,366K shares representing 7.04% ownership of the company. In it's prior filing, the firm reported owning 31,619K shares, representing a decrease of 7.67%. The firm increased its portfolio allocation in AVGO by 11.04% over the last quarter.
Capital Research Global Investors holds 21,797K shares representing 5.23% ownership of the company. In it's prior filing, the firm reported owning 21,206K shares, representing an increase of 2.71%. The firm increased its portfolio allocation in AVGO by 19.06% over the last quarter.
AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 14,580K shares representing 3.50% ownership of the company. In it's prior filing, the firm reported owning 326K shares, representing an increase of 97.76%. The firm increased its portfolio allocation in AVGO by 1,189.33% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 12,311K shares representing 2.95% ownership of the company. In it's prior filing, the firm reported owning 11,448K shares, representing an increase of 7.01%. The firm increased its portfolio allocation in AVGO by 25.06% over the last quarter.
Broadcom Background Information
(This description is provided by the company.)
Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Broadcom Inc solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
This story originally appeared on Fintel.