The hype surrounding generative AI has helped lift the shares of semiconductor giant Broadcom (NASDAQ: AVGO) in recent months. Its business has continued expanding even during a nasty slowdown for much of the semiconductor industry, and now, optimism about Broadcom's designs for the new era of artificial intelligence has sent the stock to new all-time highs.

Some investors worry this expected jump in AI-related sales isn't sustainable. Bubble or not, though, Broadcom's business model was built for gradual growth and income. Here's why it's still a top dividend stock for the 2020s.

For starters, consider Broadcom's recently reported fiscal second-quarter 2023 results. For the period, which ended April 30, all segments with the exception of wireless grew again. Wireless is tied to the currently tough smartphone market, particularly through its long-standing connectivity chip supply agreement with Apple, which was recently extended for another few years. And with many of its peers anticipating year-over-year declines through the beginning of this summer, Broadcom is still forecasting continuous expansion.

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Source Fool.com