12 Best Dividend Stocks For Steady Growth

6. Broadcom Inc. (NASDAQ:AVGO)

5-Year Average Dividend Growth: 15.97%

Consecutive Years of Dividend Growth: 13

Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company, based in California. The company offers a wide range of semiconductor and infrastructure software products. In the past five years, the company has raised its payouts at an annual average rate of nearly 16% and holds a 13-year track record of consistent dividend growth, coming through as one of the best dividend stocks for steady growth. The company offers a quarterly dividend of $5.25 per share and supports a dividend yield of 1.26%, as of August 23.

Broadcom Inc. (NASDAQ:AVGO) provides network and data center solutions, along with cloud-based tools, through its subsidiary, VMware. While approximately 60% of its revenue is generated from semiconductor solutions, its infrastructure software segment has been experiencing notable growth. Positioned at the intersection of AI and semiconductors, the company presents a compelling investment opportunity. Over the past year, the stock has surged by nearly 90%, leading management to initiate a 10-for-1 stock split in July, making Broadcom shares more accessible to both investors and employees.

Broadcom Inc. (NASDAQ:AVGO) generated $12.5 billion in revenues in the second quarter of 2024, which saw a 43% growth from the same period last year. The company is particularly strong in generating consistent cash flow, setting it apart from many other tech companies. Its operating cash flow for the quarter came in at $4.5 billion and its free cash flow was over $4.4 billion. The free cash flow represented 36% of the company’s revenue. The cash flow was sufficient to pay $2.5 billion to shareholders through dividends.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 130 funds owned stakes in Broadcom Inc. (NASDAQ:AVGO), jumping from 115 in the previous quarter. These stakes are collectively valued at over $20 billion. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q2.