15 Best NASDAQ Dividend Stocks To Buy

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Broadcom Inc. (NASDAQ:AVGO) is a California-based multinational semiconductor company that offers a wide range of semiconductor and infrastructure software products. The company recently announced its Q4 2024 earnings, posting $14.05 billion in revenue, marking a significant increase of more than 51% from the same quarter the previous year. Semiconductor revenue reached an all-time high of $30.1 billion, with AI revenue contributing $12.2 billion, reflecting a 220% year-over-year surge. This impressive growth in AI revenue was largely driven by the company’s cutting-edge AI XPUs and Ethernet networking solutions. For the fiscal year 2024, adjusted EBITDA climbed by 37% compared to the previous year, setting a new record at $31.9 billion.

Broadcom Inc. (NASDAQ:AVGO) is grabbing investors’ attention as the company plays a crucial role in powering products across various sectors, from data centers to smartphones. Impressively, more than 99% of all internet traffic flows through its technology, underscoring its leadership in networking. In addition, the acquisition of cloud virtualization firm VMware, completed a year ago, has bolstered Broadcom’s position. VMware’s operating margin has climbed to 70%, and Broadcom is on course to surpass its goal of achieving an adjusted EBITDA of over $8.5 billion within three years.

Broadcom Inc. (NASDAQ:AVGO) currently offers a quarterly dividend of $0.59 per share and has a dividend yield of 1.04%, as of January 15. It is one of the best dividend stocks on our list as the company has been growing its payouts for 14 consecutive years. The company’s cash reserves enabled it to achieve this dividend growth. In the most recent quarter, it generated $5.6 billion in operating cash flow and its free cash flow amounted to $5.48 billion. This cash flow accounted for 39% of the company’s revenue.

Insider Monkey’s database of Q3 2024 indicated that 128 hedge funds, down from 130 in the previous quarter, owned stakes in Broadcom Inc. (NASDAQ:AVGO). These stakes have a total value of more than $14.5 billion.