Broadcom Inc. (AVGO) is a global leader in semiconductor and infrastructure software solutions.
In particular, the company provides data center networking and storage, enterprise, mainframe and cyber security software focused on monitoring and security, smartphone components, telecoms and factory automation.
With nearly $24 billion in revenue and $5 billion in R&D investment in FY2020, the company has amassed a portfolio of 25 category-leading solutions. Management has also been a champion for building shareholder value, with a 49% compound annual growth rate in its common stock dividend between FY2016 and FY2021, supported by growing free cash flows.
Rising Cloud and Wireless Demand
Broadcom benefited from strength in networking from cloud and for broadband from service providers, as well as a significant ramp up in the wireless space, which helped offset weakness in enterprise demand. Despite pandemic-related challenges and macroeconomic uncertainty, the company delivered record profitability and $11.6 billion in free cash flow in fiscal 2020.
The company increased its dividend by 10.8% to $3.60 per share following the strong fiscal fourth quarter financial results, which represents a 3.52% forward yield. The dividend is payable on December 31, 2020 to shareholders on record as of December 21, 2020.
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