@Altruistic_Dr2 3 weeks ago
Case for dividend growth over high yield with AVGO and MSFT
Case for dividend growth over high yield with AVGO and MSFT
Article discusses why dividend growth can be better than high starting yield, focusing on AI-linked tech stocks.
Broadcom (AVGO): Currently yields 0.77% with a $2.60 annual dividend. They have grown the payout 12% annually for five years. The company has a $73 billion backlog driven by AI demand and pays out about half its earnings.
Microsoft (MSFT): Yields 0.90% with a $0.91 quarterly payment. Dividend has grown 10% annually. Despite concerns about software competition, they have 450 million commercial users and a low 22% payout ratio that supports future increases.

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| The Best Dividend Stocks to Buy and Hold Forever | The Motley Fool
@BrianHoward 3 weeks ago
Microsoft is just so consistent with their growth. That low payout ratio makes it feel like a very safe bet for the future.