10 Top Performing Dividend Stocks in 2024

2. Broadcom Inc. (NASDAQ:AVGO)

Year-to-Date Return as of December 25: 120.82%

An American multinational semiconductor company, Broadcom Inc. (NASDAQ:AVGO) ranks second on our list of the best performing stocks that pay dividends. The company offers a wide range of semiconductor and infrastructure software products. It recently announced its Q4 2024 earnings and reported revenue of $14.05 billion, which showed a significant growth of over 51% from the same period last year. Semiconductor revenue reached a record $30.1 billion, fueled by $12.2 billion in AI revenue. The AI revenue, which grew 220% year-over-year, was driven by the company’s leading AI XPUs and Ethernet networking portfolio. In fiscal year 2024, adjusted EBITDA increased by 37% compared to the previous year, reaching a record $31.9 billion.

Though Broadcom Inc. (NASDAQ:AVGO) has not provided full-year guidance, analysts anticipate the company’s revenue will grow by nearly 19% in the current fiscal year, reaching $61.1 billion. Moreover, the semiconductor specialist is expected to see a 15% increase in revenue over the next couple of fiscal years as well.

In addition to its strong earnings, Broadcom Inc. (NASDAQ:AVGO) also showed a solid cash position. During the quarter, the company reported an operating cash flow of over $5.6 billion, and its free cash flow came in at $5.48 billion. This cash flow represented 39% of the company’s revenue. Due to its growing cash flow, it announced an 11.3% hike in its quarterly dividend to $0.59 per share on December 12. This marked the company’s 14th consecutive year of dividend growth. As of December 25, the stock has a dividend yield of 0.98%.

As of the end of Q3 2024, 128 hedge funds in Insider Monkey’s database held stakes in Broadcom Inc. (NASDAQ:AVGO), compared with 130 in the previous quarter. The consolidated value of these stakes is over $14.5 billion. With more than 23.4 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.