4 Reasons Broadcom Will Remain The Best Dividend Growth Stock In 2021

Seeking AlphaDividend Ideas | Tech 4 Reasons Broadcom Will Remain The Best Dividend Growth Stock In 2021Dec. 18, 2020 1:08 AM ET|| About: Broadcom Inc. (AVGO), Includes: AAPL, AVGOP, NXPI, STM, TXNby: Michael FitzsimmonsMichael Fitzsimmons Technology, ETFs, Renewable Energy, Oil & gas, GoldSummaryAs most of you know by now, Broadcom raised the quarterly dividend 10.8% this year to $3.60/share. That's $14.40/share on an annual basis - up $1.40 from the previous $13/share.
Broadcom is the best dividend growth stock in the market. Not just for the income growth, but because it also exposes shareholders to significant capital appreciation and superior total returns.
This article will suggest four reasons why Broadcom will remain the best dividend growth stock for at least another year (and likely much longer).
Shareholders in Broadcom (AVGO) will no doubt be toasting CEO Hock Tan and the rest of the company's employees this New Year's Eve for yet another year of excellent financial returns despite significant headwinds from the global pandemic. The stock is up 32% YTD and the annual dividend was boosted from $13 to $14.40 (a 10.8% increase). But the party isn't over because there are at least four good reasons why shareholders will be raising their glasses next New Year's Eve as well.
In my last Seeking Alpha article on Broadcom, I showed evidence that it was The Best Dividend Growth Stock in the entire U.S. market. The recent and powerful Q4 and full-year 2020 EPS report and strong dividend increase support that thesis, as does the chart below: it shows that, over the past 10 years, Broadcom's total returns of 1,736% beat the S&P 500 by greater than 6.5x:
Source: Seeking Alpha Charting Tool
Now I'll give investors four reasons to justify that type of performance will continue at least through next year (and likely much longer than that).
Reason #1: Order Policy and Backlog
The first reason is a somewhat oft-overlooked feature of... Read more