Microsoft and Broadcom Increase Dividends While Investing for Future Growth

The article highlights Microsoft and two other growth stocks, Broadcom and Visa, that have gradually increased their dividends while reinvesting in their businesses. Microsoft, in particular, has tripled its dividend in the last decade, with a low payout ratio of 25%, indicating its financial stability. These companies maintain a balance between dividends and reinvestment, illustrating their maturity and capacity to support shareholder returns.

Microsoft Corporation (MSFT) and two other growth stocks, Broadcom Inc. (AVGO) and Visa Inc. (V), have been gradually increasing their dividends while reinvesting in their businesses. This article highlights the financial stability and growth potential of these companies.

Microsoft, with a market capitalization of $2.2 trillion, has tripled its dividend in the last decade. The tech giant's low payout ratio of 25% indicates its financial stability [1]. Microsoft's focus on shareholder returns is evident in its history of dividend increases and share buybacks [1].

Broadcom, a leading semiconductor company, also maintains a balance between dividends and reinvestment. With a market capitalization of $308 billion, Broadcom has raised its dividend for 16 consecutive years [2]. This consistent growth in dividends, coupled with its focus on R&D and strategic acquisitions, positions Broadcom for continued success [2].

Visa, a global payments technology company, has a market capitalization of $745 billion. The company has increased its dividend for 16 consecutive years, demonstrating its financial stability and commitment to shareholders [3]. Visa's low payout ratio of 30% suggests that the company has ample resources for reinvestment [3].

These companies' ability to balance dividends and reinvestment highlights their maturity and financial stability. They demonstrate that focusing on both shareholder returns and growth is a successful strategy for long-term value creation.

References:

1. Microsoft Corporation. (2023). Financial Review. Retrieved from https://www.microsoft.com/investor/reports/ar23/index.html
2. Broadcom Inc. (2023). Dividend History. Retrieved from https://investor.broadcom.com/investor-relations/dividend-history/
3. Visa Inc. (2023). Dividend History. Retrieved from https://investors.visa.com/investor-relations/dividend-history/