Broadcom Finishes Its 2019 Fiscal Year Strong and Remains a Top Dividend Stock
Semiconductor giant Broadcom (NASDAQ: AVGO) has been unstoppable this year. Coming off a flat performance in 2018, the stock is up 30% with just weeks left in 2019. The Brocade and CA Technologies software acquisitions from the last two years helped offset losses in the core chip business and fueled the company's transition to a vertically integrated provider of networking technology.
Investors should be optimistic: The fourth-quarter report card was solid, and the initial outlook for 2020 was good, too. With some of the headwinds from the last couple of years possibly coming to an end -- an easing in the U.S.-China trade war and a general pickup in business spending and global economic activity -- Broadcom remains a top tech dividend stock.
Broadcom's bread and butter, semiconductors, fell 5% in Q4 and 8% on the year. But that was more than offset by infrastructure software, including sales from the CA Technologies takeover in 2018. In total, Q4 sales were up 6%, and free cash flow (money left after cash operating and capital expenses are paid for) fell 6%.
Source Fool.com
