Seeking Alpha
17 Oct 2026, 10:46 UTC · 1h ago
AI Stocks Are The Next Dividend Growers
Impact · against what's priced in
The transition of AI leaders into dividend growers is largely a confirmation of the massive free cash flow already baked into current valuations. For NVDA and AVGO, the ability to raise dividends is a trailing result of the profitability the market already expects, providing no new catalyst for price appreciation.
- AVGO+0.00
Already priced in
- The price assumes
Free cash flow margins holding near 42%
The fact that Broadcom retains almost 50% of sales as free cash flow supports the margin assumptions already used to value the stock.
What AVGO's price assumes · Sep 9
