Broadcom's dividend yield is 9.01% as of October 8, 2024, which is relatively high and may be attractive to income-seeking investors1. The company has a history of dividend growth, with a dividend continuous duration of 8 years and a dividend growth duration of 7 years2. This suggests a strong track record of returning value to shareholders through dividends.
However, the dividend payout ratio as of September 30, 2024, is 14.87%3, which is moderate and indicates that the company retains a significant portion of its earnings for growth and other shareholder returns, including buybacks.
The company's financial position supports the possibility of a stock buyback, with a repurchase of common stock amounting to $274 million, $1.52 billion, $3.42 billion, $1.71 billion, $577 million, $8.29 billion, and $1.55 billion respectively4. Broadcom's cash and cash equivalents have been substantial, with amounts of $12.42 billion, $12.65 billion, $11.55 billion, $12.06 billion, $14.19 billion, $11.86 billion, $9.81 billion, and $9.95 billion respectively5.
The decision to engage in a stock buyback would depend on various factors, including the company's financial performance, market conditions, and strategic considerations. Given Broadcom's high dividend yield, moderate payout ratio, and significant cash reserves, it is plausible that the company could consider a stock buyback as part of its capital allocation strategy. However, the specific details of any potential buyback program would need to be reviewed by the company's board of directors and announced accordingly.
10/9/2024 07:48pm
