AVGO Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of AVGO, the DDM model, as implemented by StockNews, implies a negative return of 14.64% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Broadcom Inc are:

• In comparison to other stocks in the Technology sector, AVGO provides shareholders with a dividend yield greater than 84.68% such stocks.
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for AVGO than it is for merely 18.55% of other equities in the Technology sector that also issue dividends.
• In terms of who is growing the amount of dividends they return to shareholders, Broadcom Inc has been increasing its dividends at a faster rate than 86.96% of US-listed dividend-issuing stocks we observed.

AVGO Dividends vs. Peers