AVGO vs QCOM: Dividend Comparison
Dividend data as of
Broadcom Inc. (AVGO) and Qualcomm Inc/De (QCOM) are both in the Information Technology sector, making them natural rivals for dividend investors. QCOM offers a significantly higher 2.51% yield compared to AVGO's 0.71%, a gap of 1.80%. For dividend growth, AVGO leads with a 5-year CAGR of 12.9% versus QCOM's 7.0%. AVGO holds the edge in dividend safety with a "Safe" rating. AVGO is a Dividend Challenger while QCOM is a Dividend Contender.
Verdict
Yield Analysis
QCOM yields 1.80% more than AVGO. In dollar terms, AVGO pays $2.42/share vs QCOM's $3.52/share annually.
Dividend Growth
AVGO: Dividend growth has been steady, with a 3-year CAGR of 12.7% and a 5-year CAGR of 12.9% (10-year: 28.6%).
QCOM: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 7.0% and the 10-year rate of 6.1%.
Dividend Safety
AVGO: The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x.
QCOM: The payout ratio of 71% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AVGO vs QCOM today?
At $327.48 per share, $10,000 buys about 30.5 shares of Broadcom Inc. (AVGO). Each share pays $2.42 per year in dividends, so the position starts out generating roughly $74 per year — about $6 a month.
At $140.78 per share, $10,000 buys about 71.0 shares of Qualcomm Inc/De (QCOM). Each share pays $3.52 per year in dividends, so the position starts out generating roughly $250 per year — about $21 a month.
QCOM is the larger income stream from day one: $176 per year more on the same $10,000 invested.
What could $10,000 of AVGO or QCOM income look like in 10 years?
Broadcom Inc. (AVGO) has raised its dividend about 12.9% a year over the past five years. If that pace held, the $71 per year that $10,000 generates today at the current 0.71% yield would reach $239 per year by 2036 — a 2.4% yield on the original cost.
Qualcomm Inc/De (QCOM) has raised its dividend about 7.0% a year over the past five years. If that pace held, the $251 per year that $10,000 generates today at the current 2.51% yield would reach $492 per year by 2036 — a 4.9% yield on the original cost.
On those trailing rates, QCOM pays more in 2036: $492 versus $239 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would AVGO's dividend growth overtake QCOM's higher yield?
Broadcom Inc. (AVGO) yields less today (0.71% vs 2.51%) but has grown its dividend faster — 12.9% vs 7.0% a year over the past five years. If both trends continued, a $10,000 position in AVGO would start out-earning the same position in QCOM around 2050 (roughly 24 years from now), paying about $1,305 per year at the crossover. Before that point, QCOM pays more each year; after it, the gap compounds in AVGO's favor.
Can AVGO and QCOM afford their dividends?
Broadcom Inc. (AVGO) earns $4.78 per share against $2.42 paid out in dividends — 2.0x coverage (a 49% payout ratio).
Qualcomm Inc/De (QCOM) earns $4.96 per share against $3.52 paid out in dividends — 1.4x coverage (a 71% payout ratio).
AVGO's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for QCOM if earnings weaken.
Which fits an early-retirement income portfolio better, AVGO or QCOM?
For income you need right now, Qualcomm Inc/De (QCOM) leads: $100,000 invested today pays about $209 a month at the current 2.51% yield, versus $59 a month from Broadcom Inc. (AVGO) at 0.71%.
With a decade or more before the income is needed, AVGO's faster dividend growth (12.9% vs 7.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: AVGO has raised its dividend 6 consecutive years; QCOM has raised its dividend 23 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $256/yr in AVGO vs $631/yr in QCOM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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