Broadcom

Management aggressively reinvests capital into high-return areas. Broadcom pours a large portion of free cash into R&D and transformative acquisitions (CA, Symantec, VMware) that have expanded its franchise. Shareholders also see significant buybacks: e.g. $7.2B of stock repurchases in 2024. Dividends are modest compared to cash flow.

Stock-based compensation has grown (~$5.7B in 2024) but is largely offset by repurchases. Overall, capital is deployed into core high-ROI projects and shareholder returns, which we rate highly.