10 Dividend Knights that Beat The Market Last 3 Years

2. Broadcom Inc. (NASDAQ:AVGO)

3-Year Share Price Gains as of  December 4: 206.7%

Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company that offers a wide range of semiconductor and infrastructure software products. The company contributes to the development of AI infrastructure in two key areas. One is its networking portfolio, which includes components like switches and network interface cards (NICs). Switches enable communication between multiple devices, while NICs establish network connections. It is one of the best dividend knights, generating a nearly 207% return in the past three years.

Broadcom Inc. (NASDAQ:AVGO) delivered strong performance in fiscal Q3 2024, reporting $13.07 billion in revenue—a 47% increase compared to the same quarter last year. This growth highlights the company’s continued success in AI semiconductor solutions and VMware. Revenue from AI is expected to reach $12 billion for fiscal 2024, driven by Ethernet networking and custom accelerators for AI data centers. The integration of VMware is advancing well and is anticipated to boost adjusted EBITDA margins to 64% of revenue by the end of the fiscal year.

In addition to its strong performance, Broadcom Inc. (NASDAQ:AVGO) also maintains a solid cash position. The company reported an operating cash flow of $5 billion and a free cash flow of $4.8 billion, representing 37% of its revenue. Broadcom returned $2.4 billion to shareholders through dividends during the quarter, solidifying its reputation as an excellent choice for dividend-focused portfolios.

Broadcom Inc. (NASDAQ:AVGO) offers a quarterly dividend of $0.53 per share and has a dividend yield of 1.18%, as of December 5. The company has consistently increased its payouts for 13 years in a row.

Broadcom Inc. (NASDAQ:AVGO) was included in 128 hedge fund portfolios at the end of Q3 2024, as per Insider Monkey’s database. The stakes owned by these hedge funds have a consolidated value of over $14.5 billion. With over 23.4 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.