By Daniel Foelber
Publication Date: 2026-01-29 22:04:00
Broadcom combines growth potential and passive income, making it one of the best stocks to buy in 2026.
Broadcom (AVGO 0.65%) has produced monster returns in recent years — pole-vaulting the semiconductor and infrastructure software giant to seventh on the list of the most valuable S&P 500 components by market capitalization.
Broadcom has captured the market’s attention for its exponential artificial intelligence (AI) revenue growth — with AI semiconductor revenue expected to make up a staggering 42.9% of first-quarter fiscal 2026 revenue. Just a few years ago, Broadcom was mainly a pick-and-shovel general networking and software company. Now, it is on the cutting edge of building custom AI chips and associated high-performance infrastructure for hyperscale data centers.
With a mere 0.8% dividend yield, Broadcom may not light up a passive income investor’s radar. But Broadcom may just be the most underrated dividend growth stock to buy in 2026. Here are three reasons why.
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