5 Best Jim Cramer Stocks to Watch in December

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 50

In his Mad Money segment on December 3, Jim Cramer described Broadcom Inc. (NASDAQ:AVGO) as “remarkably consistent in an inconsistent world.” The California-based chipmaker is one of the winners of the stay-at-home era that started during the pandemic. Shares of Broadcom Inc. (NASDAQ:AVGO) increased 40% in the past twelve months.

JPMorgan analyst Harlan Sur upped his price target on Broadcom Inc. (NASDAQ:AVGO) to $655 from $650 on December 6, while maintaining an Overweight rating on the stock. Further, 50 hedge funds tracked by Insider Monkey were long Broadcom Inc. (NASDAQ:AVGO) at the end of the third quarter of 2021, up from 47 in Q2 2021. 

Broadcom Inc. (NASDAQ:AVGO) is one of the tech companies that pays out an annual dividend of $14.40 per share.

In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Broadcom Inc. (NASDAQ:AVGO) and discussed its stance on the firm. Here is what the fund said:

“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of the portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.

Broadcom has delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”