14 Best Large Cap Dividend Growth Stocks To Buy Now

8. Broadcom Inc. (NASDAQ:AVGO)

5-Year Average Annual Dividend Growth Rate: 14.14%

Broadcom Inc. (NASDAQ:AVGO) is a California-based semiconductor company that offers a wide range of semiconductor and infrastructure software products. In the fourth quarter of 2024, the company reported revenue of $14.05 billion, a remarkable 51% increase from the previous year. Semiconductor revenue hit a record $30.1 billion, with AI revenue soaring 220% year-over-year to $12.2 billion. This strong growth was driven by the company’s advanced AI XPUs and Ethernet networking solutions. For the full fiscal year 2024, adjusted EBITDA rose 37% year-over-year, reaching a record $31.9 billion.

Broadcom Inc. (NASDAQ:AVGO) is drawing considerable investor attention due to its essential role in powering products across multiple industries, such as data centers and smartphones. Its technology manages over 99% of internet traffic, underscoring its dominance in networking. In addition, the company’s acquisition of VMware, a cloud virtualization firm, a year ago has bolstered its market position. VMware’s operating margin has increased to 70%, and the company is on track to surpass its goal of generating over $8.5 billion in adjusted EBITDA within three years.

Broadcom Inc. (NASDAQ:AVGO), one of the best dividend stocks, currently offers a quarterly dividend of $0.59 per share and has a dividend yield of 1.00%, as of February 12. The company has increased its payouts for 14 straight years. This impressive dividend growth is driven by the company’s strong cash position. In the most recent quarter, Broadcom generated $5.6 billion in operating cash flow and $5.48 billion in free cash flow, accounting for 39% of its total revenue.