AVGO vs ROP: Dividend Yield, Growth & Safety Comparison
Broadcom Inc. (AVGO) and Roper Technologies Inc (ROP) are both in the Information Technology sector, making them natural rivals for dividend investors. Both stocks offer similar yields — AVGO at 0.71% and ROP at 0.97%. For dividend growth, ROP leads with a 5-year CAGR of 18.2% versus AVGO's 12.9%. Both stocks carry a "Safe" dividend safety rating. AVGO is a Dividend Challenger with 6 years of consecutive increases.
Key Metrics Comparison
| Metric | AVGO | ROP |
|---|
| Dividend Yield | 0.71% | 0.97% |
| Annual Dividend | $2.42 | $3.38 |
| 5-Year CAGR | 12.9% | 18.2% |
| Payout Ratio | 49% | 23% |
| Consecutive Years | 6 | 0 |
| Price | $327.48 | $321.99 |
Yield Comparison
Roper Technologies Inc (ROP) currently yields 0.97%, which is very low for the broader market. That's 0.26% more than Broadcom Inc. (AVGO), which yields 0.71%. In dollar terms, ROP pays $3.38/share annually versus AVGO's $2.42/share.
Dividend Growth
Over the past five years, ROP has grown its dividend at a 18.2% CAGR compared to AVGO's 12.9%. 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%). ROP: Dividend growth is accelerating — the 3-year CAGR of 26.9% exceeds the 5-year rate of 18.2% and the 10-year rate of 15.5%.
Dividend Safety
AVGO's dividend safety is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x. ROP's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x. ROP's payout ratio of 23% is more conservative than AVGO's 49%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in ROP generates approximately $97/year in dividend income, compared to $71/year from AVGO — a difference of $26/year. At $100,000, that gap widens to $260/year.
Verdict
- Best for income: ROP
- Best for growth: ROP
- Best for safety: ROP
Frequently Asked Questions
Which has a higher dividend yield, AVGO or ROP?
Roper Technologies Inc (ROP) has a higher dividend yield of 0.97% compared to Broadcom Inc. (AVGO) at 0.71%.
Is AVGO or ROP a better dividend growth stock?
Roper Technologies Inc has the stronger dividend growth with a 5-year CAGR of 18.2%, compared to Broadcom Inc.'s 12.9%.
Which is safer for dividend income, AVGO or ROP?
Broadcom Inc.'s dividend safety is rated "Safe" while Roper Technologies Inc is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x.
How much income does $10,000 in AVGO vs ROP generate?
A $10,000 investment in AVGO generates approximately $71/year in dividends, while the same amount in ROP generates about $97/year.
Is AVGO or ROP a Dividend Aristocrat?
Broadcom Inc. is a Dividend Challenger with 6 consecutive years of increases. Roper Technologies Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, AVGO or ROP?
Roper Technologies Inc has a lower payout ratio of 23% compared to Broadcom Inc.'s 49%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AVGO vs ROP: which is better for retirement income?
It depends on your priorities. ROP for current income, ROP for dividend growth, ROP for safety. Many retirement investors hold both for diversification.
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