Microsoft’s dividend growth is fueled by its subscription-based model, with a 10% annualized growth rate over the past decade. The company’s cloud revenue surpassed $51 billion, supporting profitability and steady free cash flow for consistent dividend increases. Analysts project 14% annual earnings growth, indicating potential for further dividend growth.

Broadcom offers specialized semiconductors with high margins, generating $27 billion in free cash flow last year. The company has increased its dividend for 15 consecutive years and announced a recent 10% increase. Analysts forecast 31% annual earnings growth driven by demand for customized chips and networking products for data centers.

Investing in businesses with robust cash flows is ideal for long-term dividend growth. Microsoft and Broadcom, with their strong financial positions and potential for share price appreciation, are excellent options for investors seeking consistent dividends and potential growth in the technology sector.

Read more at Nasdaq: 2 Dividend Stocks to Hold for the Next 20 Years