Broadcom Stock Just Raised Its Dividend by 10%. Should You Buy AVGO Stock Now?

Company Overview - Broadcom declared a quarterly dividend of $0.65, marking a 10.2% increase from the previous quarter's $0.59, showcasing strong cash flows and commitment to long-term investors [1] - The company is a significant player in the semiconductor industry, focusing on custom chip designs for AI workloads, and is headquartered in San Jose, California [4] Industry Trends - There is a growing investment in IT infrastructure upgrades driven by the rise of generative AI since 2022, which is expected to benefit AI chipmakers like Broadcom [2] - Semiconductor sales are projected to reach $1 trillion by 2026, indicating strong demand for chips, which Broadcom is well-positioned to capture [3] Stock Performance - Despite a recent 22% drop in the last five trading sessions, Broadcom's stock has increased by 35% over the past year, outperforming the Nasdaq Composite Index's 13.2% gains [5] - Broadcom's forward P/E ratio of 44.68x has fallen below its five-year average of 47.36x, but it remains at a premium compared to peers like Nvidia and Marvell Technologies [6] Financial Metrics - The company's long-term debt-to-total capital ratio stands at 42.33%, significantly higher than Nvidia's 7.31% and Marvell's 22.43%, indicating potential financial pressure [6]