13 Best Dividend Growth Stocks With 10%+ Yearly Increases

7. Broadcom Inc. (NASDAQ:AVGO)

5-Year Average Annual Dividend Growth Rate: 14.14%

Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company that offers a wide range of semiconductor and infrastructure software products. The company is attracting significant investor interest due to its crucial role in powering products across various industries, including data centers and smartphones. The company’s technology handles over 99% of internet traffic, highlighting its dominance in networking. In addition, Broadcom’s acquisition of VMware, a cloud virtualization company, a year ago has strengthened its market standing. VMware’s operating margin has risen to 70%, and the company is on track to exceed its target of generating more than $8.5 billion in adjusted EBITDA within three years.

In the fourth quarter of 2024, Broadcom Inc. (NASDAQ:AVGO) reported revenue of $14.05 billion, marking a remarkable 51% year-over-year growth. Semiconductor revenue reached a record high of $30.1 billion, with AI revenue surging 220% from the previous year, totaling $12.2 billion. This impressive growth was fueled by the company’s advanced AI XPUs and Ethernet networking solutions. For the full fiscal year 2024, adjusted EBITDA grew 37% year-over-year, reaching a record $31.9 billion.

Aristotle Atlantic Partners, LLC made the following comment about AVGO in its Q4 2024 investor letter:

Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as the company’s third quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, which only includes contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.

Broadcom Inc. (NASDAQ:AVGO) is one of the best dividend stocks on our list as the company has been raising its payouts for 14 consecutive years. The company achieved this remarkable dividend growth because of its cash position. In the latest quarter, the company generated $5.6 billion in operating cash flow and $5.48 billion in free cash flow, which represented 39% of its total revenue. It currently pays a quarterly dividend of $0.59 per share and has a dividend yield of 1.05%, as of February 8.