Broadcom Inc. increased its quarterly dividend by 10%. The new payout stands at $0.65 per share. This move signals the company’s confidence in its financial strength.
This confidence is underpinned by a massive $73 billion backlog in its AI semiconductor business. Broadcom expects this backlog to convert fully to revenue over the next 18 months.
The dividend boost follows a period of stock volatility after the company’s fourth-quarter earnings report in early December. Although Broadcom beat earnings expectations, the stock experienced a decline.
Investors reacted specifically to discussions regarding gross margins related to the growing AI product mix. The dividend increase reinforces Broadcom's commitment to shareholder returns amid rapid growth in the AI sector.