From Yahoo Finance: 2025-04-14 12:52:00

Dividend-paying stocks have been a consistent favorite for investors, with historical data showing significant growth potential. Companies in the S&P index now contribute 85% of total dividends paid across the market, with top firms expected to distribute $280 billion in dividends.

Broadcom Inc. (AVGO), an American semiconductor company, saw a boost in its stock following a market recovery rally. In fiscal Q1 2025, AVGO reported $14.9 billion in revenue, driven by strong demand for AI-related chips and infrastructure software. The company generated over $6.1 billion in operating cash flow and returned $2.77 billion to shareholders through dividends.

AVGO ranks 1st on the list of best dividend-paying stocks according to hedge funds. Although AVGO shows promise, deeply undervalued dividend stocks may offer higher returns in a shorter timeframe. Investors interested in such stocks can explore opportunities within the market.

Investor interest in dividend stocks remains high, with companies focusing on dividend growth showing strong long-term fundamentals. Nuveen suggests that firms with a history of increasing dividend payments tend to outperform the broader equity market, making them a solid foundation for portfolios. Companies are expected to continue raising dividends in 2025, supported by healthy balance sheets and growth projections.

Read more: Is Broadcom Inc. (AVGO) the Best Dividend Paying Stock According to Hedge Funds?