Technology Sector Ideas

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Broadcom (AVGO) - >>> Broadcom isn't exactly a household name among semiconductor companies, but the company designs parts for a wide range of items from smartphones to mobile network equipment to data center hardware. In a world in which technology is growing in importance, Broadcom's chips are an absolute staple.

Broadcom dedicates billions of dollars to research and development every year, so the importance of its products isn't likely to fade anytime soon. Additionally, the company has not been shy about spending money, most-recently into more software products. In May of 2022, it reached a huge $61 billion deal to buy VMWare further expanding its reach into software to augment its core semiconductors business. As a result, Broadcom is one of the most profitable names in the semiconductor industry.

Management's target is to return half of the previous year's free cash flow to shareholders via its dividend, which has equated to fantastic income increases for owners of this tech stock.

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