Broadcom Corporation (BRCM) reported fourth quarter results that edged Wall Street’s expectations after the closing bell, and handed out its first dividend hike as well.
The semiconductor company posted adjusted earnings of $0.75 per share, topping the $0.74 consensus estimate, while revenue of $1.95 billion also edged Wall Street’s expectations ($1.90 billion).
Broadcom expects first quarter sales of $1.75 to $1.85 billion, bracketing the current view of $1.80 billion.
The company also gave shareholders their first raise, boosting its quarterly dividend 12.5% to $0.09 per share. Broadcom initiated its dividend almost exactly one year ago, so this is a fantastic signal for investors seeking up-and-coming dividend growth companies.
Shares of BRCM suffered a sharp drop after the earnings release, likely due to some confusion over their EPS figure. The stock currently sits at $44.14 (-4.94%) in extended trading, but I would be shocked if they don’t rebound after posting such a strong quarter. At that level, the stock now carries a 3.26% dividend yield.