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@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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@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.