10 Best Long Term Stocks to Buy According to Billionaires

Page 9 of 9

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Billionaire Holders: 26

Broadcom Inc. (NASDAQ:AVGO) is a US-based semiconductor company that provides a broad range of services to its customers. In fiscal Q1 2025, the company reported $14.9 billion in revenue, marking a 24.7% increase compared to the same period last year, surpassing analyst expectations by $325.2 million. The growth was driven by strong demand for its AI-related chips and infrastructure software. AI revenue surged 77% year-over-year to $4.1 billion, while infrastructure software sales grew 47% to $6.7 billion.

Broadcom Inc. (NASDAQ:AVGO) also maintained a strong financial position, generating over $6.1 billion in operating cash flow and more than $6 billion in free cash flow, which accounts for around 40% of its total revenue. During the quarter, Broadcom returned $2.77 billion to shareholders through dividends and currently pays a quarterly dividend of $0.59 per share. The stock has a dividend yield of 1.32%, as of April 15.

According to Insider Monkey’s Q4 2024 database, 26 billionaires held stakes in Broadcom Inc. (NASDAQ:AVGO), worth over $14.4 billion. In addition, 161 hedge funds invested in the company in Q4, with a collective stake value of more than $22 billion. With nearly 24 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.

Overall, Broadcom Inc. (NASDAQ:AVGO) ranks first on our list of the best long term dividend stocks according to billionaires. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than AVGO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9