Broadcom

Broadcom is a semiconductor and infrastructure-software giant, supplying chips for networking, broadband, wireless and data-centre applications alongside a growing portfolio of enterprise software from acquisitions such as VMware. Its custom silicon has become central to the build-out of artificial-intelligence data centres, driving a surge in demand. Broadcom has raised its dividend rapidly since it began paying, backed by enormous cash flow and a strategy of returning a large share of profits to shareholders. The yield is low because the share price has climbed so sharply, but the dollar payout has grown quickly. This is a strong dividend-growth profile on a highly cash-generative business, with the caveat of heavy acquisition-related debt and semiconductor cyclicality.