$1,000 of AVGO stock from 2016 is worth this much with dividends

There are dividend stocks. And past determination are dividend stocks that besides hap to beryllium among the best-performing stocks of the past decade.

Broadcom falls into that second, precise uncommon category.

Most investors cognize Broadcom (AVGO) arsenic a semiconductor and infrastructure bundle giant.

Fewer recognize what it's done for semipermanent shareholders, not conscionable successful terms appreciation, but successful increasing income implicit time.

The numbers archer a striking story. And if you had $1,000 sitting successful AVGO stock backmost successful 2016, you'd beryllium looking astatine a precise antithetic fig successful your brokerage relationship close now.

Let's commencement with the earthy return.

A $1,000 concern successful AVGO banal successful 2016 would beryllium worth astir $20,000 today connected terms appreciation alone, notes Stock Titan. That's a summation of astir 1,890%.

Factor successful dividends reinvested implicit that period, and the total climbs to astir $25,600: a cumulative instrumentality of astir 2,460%.

But the communicative gets amended erstwhile you zoom successful connected what the dividend itself has done.

Back successful 2016, $1,000 bought you astir 63 shares of AVGO. The annualized dividend astatine the clip was $0.20 per share.

So those 63 shares generated conscionable $12.60 successful yearly dividend income — a output of 1.26% connected your archetypal investment. Not precisely eye-catching.

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Fast guardant to today. Broadcom present pays $2.60 per stock annually. Those aforesaid 63 shares now make $163.80 per twelvemonth successful dividends. That's a yield-on-cost of 16.38%.

Put simply, the income unsocial from that archetypal $1,000 concern present exceeds what galore savings accounts wage by a wide margin.

Here's a snapshot of the cardinal dividend metrics each income capitalist should cognize astir AVGO stock.

• 2016 annualized dividend per share: $0.20

• Current annualized dividend per share: $2.60

• Dividend maturation (2016 to present): 1,200%+

• Original output connected $1,000 concern (2016): 1.26%

• Current yield-on-cost (same $1,000 investment): 16.38%

• Annual dividend income from 63 shares today: $163.80

• Annual dividend income from 63 shares successful 2016: $12.60

• Dividend payout cadence: Quarterly

The yearly dividend disbursal for Broadcom banal is astir $12.3 billion, portion the institution is projected to study a escaped currency travel of $49.5 cardinal successful fiscal 2026, indicating a payout ratio of astir 25%.

Broadcom isn't conscionable coasting connected past success. The company's astir caller net study showed wherefore analysts and investors stay bullish connected its future.