8 Unstoppable Dividend Stocks to Invest in

4. Broadcom Inc. (NASDAQ:AVGO)

12-Month Return as of January 27: 65.6%

Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company that offers a wide range of semiconductor and infrastructure software products. The stock recently faced significant setbacks, dropping over 17% on January 27, following reports that the Chinese startup DeepSeek had successfully created a highly advanced AI model using older semiconductor technology. However, the stock has surged by nearly 66% in the past 12 months.

Broadcom Inc. (NASDAQ:AVGO) recently reported its Q4 2024 earnings, achieving $14.05 billion in revenue—a notable increase of over 51% compared to the same quarter last year. Semiconductor revenue hit a record high of $30.1 billion, with AI revenue surging by 220% year-over-year to $12.2 billion. This remarkable growth was fueled by the company’s advanced AI XPUs and Ethernet networking solutions. For fiscal year 2024, adjusted EBITDA rose by 37% from the prior year, reaching a new high of $31.9 billion.

Broadcom Inc. (NASDAQ:AVGO) is attracting significant investor interest due to its key role in powering products across diverse industries, including data centers and smartphones. Notably, over 99% of internet traffic passes through its technology, highlighting its dominance in networking. In addition, the company’s acquisition of cloud virtualization firm VMware, finalized a year ago, has strengthened its position. VMware’s operating margin has reached 70%, and Broadcom is on track to exceed its target of more than $8.5 billion in adjusted EBITDA within three years.

Broadcom Inc. (NASDAQ:AVGO)’s strong cash reserves allowed it to increase its dividend. In the latest quarter, it generated $5.6 billion in operating cash flow and $5.48 billion in free cash flow, which represented 39% of its total revenue. The company has been growing its dividends for the past 14 years, which makes it one of the best unstoppable dividend stocks on our list. Its quarterly dividend comes in at $0.59 per share and has a dividend yield of 1.12%, as of January 27.

Insider Monkey’s database of Q3 2024 showed 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.