Rick Munarriz, The Motley Fool
Thu, December 18, 2025 astatine 11:08 AM CST 5 min read
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Broadcom conscionable stretched its streak of yearly dividend hikes to 15 years.
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Strong maturation and wide margins person made Broadcom a marketplace favourite successful caller years.
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United Microelectronics is much obscure, but Taiwan's second-largest foundry has a steadfast yearly dividend output of 5.7%.
You don't person to take betwixt being an income capitalist and a instrumentality of maturation stocks. There are plentifulness of opportunities to enactment successful a increasing concern that besides happens to ammunition retired regular currency distributions. You can person the champion of some worlds.
Broadcom (NASDAQ: AVGO) and United Microelectonics (NYSE: UMC) are 2 charismatic dividend payers that besides hap to person beardown maturation prospects. One of the dividend yields is overmuch higher than the other, but the 2 stocks connection steadfast upside with their beardown maturation prospects. These are 2 of the champion dividend stocks to bargain and clasp forever.
Don't fto Broadcom's tiny payout dissuade you. The supplier of semiconductor and tech infrastructure solutions whitethorn beryllium packing a output conscionable shy of 1%, but ne'er punish an income banal simply due to the fact that it has delivered monster superior appreciation on the way.
Broadcom was yielding much than 5% conscionable 7 years ago. Your archetypal instinct mightiness beryllium to presume that it has chopped its distributions on the way, but see a amended crushed for the shrinking yield. After all, conscionable past week, Broadcom boosted its dividend by 10%. It has accrued its dividend for 15 consecutive years.
Broadcom banal is simply a seven-bagger implicit the past 5 years. The existent quarterly distributions proceed to increase, but the output is little due to the fact that the banal is appreciating adjacent faster than the yearly hikes.
Broadcom's tally coincides with the roar successful artificial quality (AI) and different chip-based maturation opportunities. It claims that much than 99% of the world's net postulation crosses done immoderate benignant of Broadcom technology. With a gargantuan marketplace headdress of $1.6 trillion, determination are lone 7 different U.S. exchange-listed stocks with larger marketplace caps. You've heard of the "Magnificent Seven." Meet the 1 banal that's punching up astatine the ceiling to clang that penthouse party.
Momentum is connected its broadside close now. The 44% and 24% gross maturation successful its 2 latest fiscal years correspond the 2 largest jumps that the concern has taken successful the past 8 years. The saccharine spot present is that this isn't immoderate low-margin commodity play. Broadcom's trailing nett net borderline is simply a whopping 36%. Yes, 36% of its gross makes it each the mode down to the bottommost line. This isn't a fluke. More than a 3rd of its gross has been served up arsenic nett income successful 3 of the past 4 fiscal years.

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