Fintel reports that on September 22, 2023, Truist Securities reiterated coverage of Broadcom (NASDAQ:AVGO) with a Buy recommendation.
Analyst Price Forecast Suggests 12.58% Upside
As of August 31, 2023, the average one-year price target for Broadcom is 910.02. The forecasts range from a low of 589.84 to a high of $1,102.50. The average price target represents an increase of 12.58% from its latest reported closing price of 808.36.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Broadcom is 35,900MM, an increase of 1.26%. The projected annual non-GAAP EPS is 41.57.
Broadcom Declares $4.60 Dividend
On August 31, 2023 the company declared a regular quarterly dividend of $4.60 per share ($18.40 annualized). Shareholders of record as of September 21, 2023 will receive the payment on September 29, 2023. Previously, the company paid $4.60 per share.
At the current share price of $808.36 / share, the stock's dividend yield is 2.28%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.37%, the lowest has been 2.02%, and the highest has been 6.93%. The standard deviation of yields is 0.72 (n=235).
The current dividend yield is 1.52 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.55. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3727 funds or institutions reporting positions in Broadcom. This is an increase of 227 owner(s) or 6.49% in the last quarter. Average portfolio weight of all funds dedicated to AVGO is 0.95%, an increase of 14.92%. Total shares owned by institutions decreased in the last three months by 9.90% to 406,138K shares. 
The put/call ratio of AVGO is 1.25, indicating a bearish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 27,823K shares representing 6.74% ownership of the company. In it's prior filing, the firm reported owning 27,354K shares, representing an increase of 1.68%. The firm increased its portfolio allocation in AVGO by 27.97% over the last quarter.
Capital International Investors holds 22,911K shares representing 5.55% ownership of the company. In it's prior filing, the firm reported owning 27,586K shares, representing a decrease of 20.41%. The firm increased its portfolio allocation in AVGO by 5.33% over the last quarter.
Capital Research Global Investors holds 19,206K shares representing 4.65% ownership of the company. In it's prior filing, the firm reported owning 21,168K shares, representing a decrease of 10.21%. The firm increased its portfolio allocation in AVGO by 15.19% over the last quarter.
AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 13,313K shares representing 3.23% ownership of the company. In it's prior filing, the firm reported owning 14,627K shares, representing a decrease of 9.87%. The firm decreased its portfolio allocation in AVGO by 2.14% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 13,004K shares representing 3.15% ownership of the company. In it's prior filing, the firm reported owning 12,905K shares, representing an increase of 0.76%. The firm increased its portfolio allocation in AVGO by 25.70% over the last quarter.
Broadcom Background Information
(This description is provided by the company.)
Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Broadcom Inc solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
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