In the past, top U.S. companies paid dividends, but now only Broadcom and Apple do, with yields under 1% due to rapid share price appreciation. Apple’s dividend growth outpaces Broadcom’s, reflecting strong free cash flow growth. While Broadcom’s dividend has grown relative to share price, Apple has more free cash flow. Both companies are good options for dividend investors, with Broadcom offering a slightly higher yield currently.

Apple’s dividend yield is 0.4% and Broadcom’s is 0.7%, but both companies have a history of annual dividend hikes. Share price appreciation has outpaced dividend growth, leading to smaller yields. Apple generated more free cash flow than Broadcom, but Broadcom has been more generous with dividend payments. Despite smaller free cash flow, Apple has increased its dividend faster than Broadcom.

Both Apple and Broadcom are AI-heavyweights with well-funded dividends likely to grow. Investors may prefer Broadcom for its higher yield, but both companies offer potential for dividend growth. The Motley Fool’s Stock Advisor team recommends 10 other stocks over Apple for potential high returns. Stock Advisor has outperformed the S&P 500, providing valuable investment insights.

Author John Bromels holds positions in Apple, which is also recommended by The Motley Fool. The company also recommends IBM, Pfizer, and Walmart. The opinions expressed in this article are solely those of the author and do not reflect Nasdaq, Inc.’s views.

Read more at Nasdaq: Better AI Dividend Stock: Apple vs. Broadcom