META, AVGO, LRCX, MDT: 4 Very Different Dividend Setups
4 stocks go ex-dividend this week. Here’s what stands out. 👀
But these four names have very different dividend profiles.
🟦 $Meta Platforms, Inc.(META)$ — Sep 21
Price: $665.75
Annual dividend: $2.10
Yield: 0.3%
Payout ratio: 13%
P/E: 25
P/FCF: 42
META is clearly not a yield play.
At just 0.3%, the dividend is tiny relative to the stock price. But the 13% FCF payout ratio leaves plenty of room for the company to retain cash and continue investing in the business.
For META, the dividend is more of a shareholder-return supplement than the core investment case.
🟦 $Broadcom(AVGO)$ — Sep 21
Price: $357.61
Annual dividend: $2.60
Yield: 0.7%
4-year average yield: 1.5%
3-year dividend growth: 12%
FCF payout: 31%
P/E: 46
P/FCF: 44
AVGO is another example where the headline yield doesn't tell the whole story.
The current yield is roughly half its 4-year average, partly reflecting how much the stock price has risen.
At the same time, dividend growth has remained strong, while the FCF payout ratio is only 31%.
So the story here is much more about dividend growth + cash generation than current income.
🟦 $Lam Research(LRCX)$ — Sep 23
Price: $288.11
Annual dividend: $1.32
Yield: 0.5%
4-year average yield: 0.9%
Current yield vs. average: -51%
3-year dividend growth: 15%
FCF payout: 26%
P/E: 50
P/FCF: 74
LRCX has one of the strongest dividend-growth profiles on this list.
Dividend growth has averaged around 15% over the past three years, while the FCF payout ratio sits at just 26%.
But valuation is also much higher:
50x TTM earnings and 74x FCF.
That makes the dividend relatively small compared with the valuation investors are paying for the business.
🟦 $Medtronic PLC(MDT)$ — Sep 25
Price: $92.13
Annual dividend: $2.88
Yield: 3.1%
4-year average yield: 3.2%
3-year dividend growth: 1%
FCF payout: 60%
4-year average payout: 71%
P/E: 23
P/FCF: 19
MDT is the outlier.
Its 3.1% yield is dramatically higher than the other three names and is almost exactly in line with its 4-year average.
The dividend isn't growing nearly as fast — just 1% over three years — but the FCF payout ratio has improved from a 71% 4-year average to 60%.
That gives MDT a very different profile:
Higher current income, slower dividend growth, lower valuation.
So if you put these four side by side, the contrast is pretty clear:
$META → low yield, low payout, growth-oriented
$AVGO → low yield, strong dividend growth
$LRCX → low yield, strong dividend growth, expensive valuation
$MDT → higher yield, slower growth, lower valuation
And that's the important part about ex-dividend lists.
The highest yield isn't automatically the most interesting dividend stock.
You also want to look at dividend growth, FCF payout, historical yield and valuation.
For this group, $MDT stands out on current income.
$LRCX stands out on dividend growth.
$AVGO combines growth with a relatively moderate FCF payout.
And $META has the lowest payout ratio of the four.
Different stocks.
Very different ways to play the dividend theme. 📊
Markets are always moving - and sometimes, the best move is knowing what works for you.
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