Broadcom (NASDAQ: AVGO) continues to stand out among tech stocks for its dividend. During its earnings announcement for the fourth quarter of 2023, it announced what has become an annual payout hike, raising the dividend by 14% to $21 per share annually.

Still, at a 1.6% dividend yield, it is not far above the S 500 average of 1.4%. That may leave investors questioning whether it is a buy for its payout or whether they should evaluate Broadcom based on its potential for stock price growth.

Admittedly, the dividend is likely essential to shareholders who have held Broadcom stock from the beginning. It launched its IPO in August 2009 under its former name, Avago Technologies. At a debut price of $15 per share, such investors earn a 140% dividend return.

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Source Fool.com