Broadcom dividend: cash cover and yield
Broadcom pays $0.65 every quarter, or $2.60 in FY2026. Broadcom generated $19,346 million of real free cash flow after stock pay, or $3.99 per diluted share, so its cash covered the dividend.
How much does Broadcom pay its shareholders?
The dividend holds at $2.60 in FY2026 because the declared quarterly rate is $0.65. The base case then assumes 10% annual increases, while bear and bull growth is 5% and 12%. Strong free cash flow supports the base, but investment and financing commitments limit certainty.
| Year to Nov 2025 | Year to Nov 2024 | Year to Oct 2023 | Year to Oct 2022 | Year to Oct 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.77 | 1.29 | 3.30 | 2.65 | 1.50 |
| Free cash flow after stock pay, per share (calculated) | 3.99 | 2.88 | 3.62 | 3.49 | 2.71 |
| Dividend per share | 2.36 | 2.11 | 1.84 | 1.64 | 1.44 |
| Net share dilution (calculated) | 1.6% | 11.8% | 0.9% | -1.4% | 1.9% |
Is Broadcom's dividend covered by its cash?
Stock compensation requires an economic adjustment. Broadcom recorded $7,568 million of stock-based compensation in FY2025 and added it back because it was not a cash expense. Deducting it leaves $19,346 million of free cash flow after stock pay. On that basis, cash flow was $3.99 per diluted share rather than $5.55. The deduction is analytical, but it recognizes the value transferred from existing shareholders to employees.
Dividends and buybacks consumed most available cash in the ordinary years. A buyback can benefit continuing owners when the company buys shares below their future value, but its size alone proves nothing, especially when stock awards can replace some of the retired shares.
| Year to Nov 2025 | Year to Nov 2024 | Year to Oct 2023 | Year to Oct 2022 | Year to Oct 2021 | |
|---|---|---|---|---|---|
| Real free cash flow (after stock pay) (calculated) | 19,346 | 13,744 | 15,462 | 14,779 | 11,617 |
| Dividends paid | 11,142 | 9,814 | 7,645 | 7,032 | 6,212 |
| Shares bought back | 2,450 | 7,176 | 5,824 | 7,000 | 0 |
| Acquisitions | 0 | 25,978 | 53 | 246 | 8 |
| Debt raised minus debt repaid (calculated) | -2,812 | 20,346 | -403 | -426 | -1,591 |
| Returned to shareholders, share of real free cash flow (calculated) | 70.3% | 123.6% | 87.1% | 94.9% | 53.5% |
What could change Broadcom's dividend?
| FY2026 | FY2027 | FY2028 | FY2029 | |
|---|---|---|---|---|
| Revenue growth | 65.7 % (60.0 % / 68.0 %) | 58.0 % (28.0 % / 63.0 %) | 72.0 % (10.0 % / 85.0 %) | 30.0 % (5.0 % / 45.0 %) |
| Measure (EBITDA / cash flow) | 31,758 (25,555 / 33,272) | 48,505 (28,785 / 55,983) | 80,552 (28,785 / 106,806) | 100,978 (28,713 / 159,561) |
| Net debt | 39,604 (44,306 / 40,044) | 10,059 (28,752 / 6,913) | -49,811 (14,054 / -72,356) | -127,531 (2,276 / -199,508) |
| Buybacks | 10,000 (8,450 / 12,000) | 5,000 (0.00 / 8,000) | 5,000 (0.00 / 10,000) | 6,000 (2,000 / 12,000) |
| Dividend per share | 2.60 (2.60 / 2.60) | 2.86 (2.73 / 2.91) | 3.15 (2.87 / 3.26) | 3.46 (3.01 / 3.65) |
What is Broadcom's dividend yield against its price?
Revenue rose from $27,450 million in FY2021 to $63,887 million in FY2025. Operating margin rebounded to 39.9% from 26.1%, while diluted EPS rose to $4.77 from $1.29; FY2024 included VMware acquisition effects and an unusual tax charge. Broadcom’s free cash flow after stock pay was $3.99 per share versus $5.55 before stock pay. The valuation turns on a 1.6% free-cash-flow yield and 0.7% dividend yield.