Is Vanguard Dividend Appreciation ETF (VIG) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 05 2024
0mins
Should l Buy AVGO?
Source: NASDAQ.COM
Overview of Vanguard Dividend Appreciation ETF (VIG): Launched in 2006, VIG is a large-cap blend ETF managed by Vanguard with over $83.77 billion in assets, aiming to match the performance of the NASDAQ US Dividend Achievers Select Index, featuring a low expense ratio of 0.06% and a 12-month trailing dividend yield of 1.73%.
Investment Performance and Strategy: VIG has shown strong performance with a year-to-date increase of approximately 14.72% and a 20.59% rise over the last 12 months, while maintaining a diversified portfolio primarily in Information Technology, Financials, and Healthcare sectors, making it a medium-risk investment option compared to other ETFs in the same category.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 331.170
Low
370.00
Averages
457.75
High
525.00
Current: 331.170
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom Stock Surges Over 600% in Five Years
- Outstanding Stock Performance: Broadcom's stock has surged over 600% in the past five years, reflecting strong performance in the tech sector and increased investor confidence, further solidifying its market position.
- Stable Cash Flow: The company currently boasts a free cash flow of $7.4 billion, enabling it to consistently pay a quarterly dividend of $0.65 per share while continuing to invest in growth, indicating its financial health.
- Robust Revenue Growth: In its fourth-quarter 2025 report, Broadcom's revenues grew by 28% year-over-year, with free cash flow up 36%, and even if growth slows slightly in the coming quarters, its strong balance sheet provides a true economic moat.
- Massive Backlog: Broadcom's backlog stands at an impressive $162 billion, ensuring growth potential for the next decade while showcasing its competitive advantage and execution capabilities in the market.
See More
Alphabet's Surge in AI Spending Boosts Nvidia and Broadcom
- Capital Expenditure Outlook: Alphabet's projected capital expenditures for 2026 are between $175 billion and $185 billion, indicating a sustained increase in AI spending that will significantly benefit companies like Nvidia and Broadcom.
- Enhanced Internal Computing: Alphabet's use of TPUs to support its in-house generative AI model, Gemini, and Google DeepMind not only boosts internal computing efficiency but also strengthens its partnership with Broadcom, enhancing growth prospects for both companies.
- Cloud Platform Utilization: Google Cloud's use of TPUs for external clients suggests that while customers may hesitate to fully commit to Google's hardware, Nvidia's GPUs will still play a crucial role in the projected $175 billion to $185 billion spending, potentially increasing its market share.
- Growth Expectations Comparison: While Alphabet reported an 18% year-over-year revenue increase, Broadcom and Nvidia are expected to achieve 28% and 61% growth in their first quarters, respectively, highlighting their strong performance in the AI sector and boosting investor confidence in these stocks.
See More
AI Chip Market Outlook: Nvidia and Broadcom as Top Picks
- Nvidia's Market Dominance: Nvidia (NVDA) is the leading player in AI infrastructure with its GPUs, as five companies are projected to spend $700 billion on AI infrastructure this year, positioning Nvidia for continued outsized growth in the coming years.
- Strategic Technology Investments: With ample cash, Nvidia is investing in the AI ecosystem, including licensing Groq's technology and hiring its employees, which should enhance its competitive edge in the inference market and solidify its market position.
- Broadcom's ASIC Advantage: Broadcom (AVGO) leads in application-specific integrated circuit (ASIC) technology, helping clients design efficient custom AI chips, with AI revenue projected to grow fivefold to $100 billion by 2027, indicating strong growth potential.
- Collaboration with Google: Broadcom's collaboration with Google on tensor processing units (TPUs) has attracted multiple companies, with Anthropic placing a $21 billion TPU order, showcasing Broadcom's robust growth prospects in the AI market.
See More
Alphabet's Strong Performance in the AI Market
- Market Share Growth: Alphabet's Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT's 27% share by 2025, demonstrating its competitive edge and market leadership in the AI sector.
- Strong Financial Performance: In 2025, Alphabet generated $402.8 billion in revenue, a 15% increase year-over-year, with operating income nearing $130 billion and an operating margin of 32%, indicating robust profitability amid ongoing growth.
- Capital Expenditure Plans: Alphabet anticipates capital expenditures of $175-$185 billion for 2026, exceeding analyst expectations; however, with $30.7 billion in cash reserves and strong profitability, the company is well-positioned to support its data center expansion.
- Long-Term Debt Financing: Alphabet aims to raise $20 billion through the issuance of 100-year bonds, and despite its long-term debt of $46.5 billion, the company's diversified revenue streams and strong cash flow provide a solid financial foundation for taking on additional debt.
See More
Alphabet's AI Investment and Financial Outlook
- Significant Revenue Growth: Alphabet's revenue reached $402.8 billion in 2025, marking a 15% increase, indicating a robust financial position supported by diversified revenue streams that can sustain future investments.
- Capital Expenditure Plans: Anticipated capital expenditures for 2026 are projected to be between $175 billion and $185 billion, exceeding analyst expectations; despite the high costs of building data centers, Alphabet's cash reserves grew by 30% to $30.7 billion, showcasing its financial strength.
- AI Market Share Increase: Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT, reflecting Alphabet's growing competitiveness in the AI sector, which could lead to higher revenue streams.
- Long-term Debt Financing: Alphabet plans to raise $20 billion through the issuance of 100-year bonds; while its long-term debt stands at $46.5 billion, its strong profitability and diversified revenue sources enable effective debt risk management.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Broadcom Stock Surges Over 600% in Five Years
- Outstanding Stock Performance: Broadcom's stock has surged over 600% in the past five years, reflecting strong performance in the tech sector and increased investor confidence, further solidifying its market position.
- Stable Cash Flow: The company currently boasts a free cash flow of $7.4 billion, enabling it to consistently pay a quarterly dividend of $0.65 per share while continuing to invest in growth, indicating its financial health.
- Robust Revenue Growth: In its fourth-quarter 2025 report, Broadcom's revenues grew by 28% year-over-year, with free cash flow up 36%, and even if growth slows slightly in the coming quarters, its strong balance sheet provides a true economic moat.
- Massive Backlog: Broadcom's backlog stands at an impressive $162 billion, ensuring growth potential for the next decade while showcasing its competitive advantage and execution capabilities in the market.
See More
Alphabet's Surge in AI Spending Boosts Nvidia and Broadcom
- Capital Expenditure Outlook: Alphabet's projected capital expenditures for 2026 are between $175 billion and $185 billion, indicating a sustained increase in AI spending that will significantly benefit companies like Nvidia and Broadcom.
- Enhanced Internal Computing: Alphabet's use of TPUs to support its in-house generative AI model, Gemini, and Google DeepMind not only boosts internal computing efficiency but also strengthens its partnership with Broadcom, enhancing growth prospects for both companies.
- Cloud Platform Utilization: Google Cloud's use of TPUs for external clients suggests that while customers may hesitate to fully commit to Google's hardware, Nvidia's GPUs will still play a crucial role in the projected $175 billion to $185 billion spending, potentially increasing its market share.
- Growth Expectations Comparison: While Alphabet reported an 18% year-over-year revenue increase, Broadcom and Nvidia are expected to achieve 28% and 61% growth in their first quarters, respectively, highlighting their strong performance in the AI sector and boosting investor confidence in these stocks.
See More
AI Chip Market Outlook: Nvidia and Broadcom as Top Picks
- Nvidia's Market Dominance: Nvidia (NVDA) is the leading player in AI infrastructure with its GPUs, as five companies are projected to spend $700 billion on AI infrastructure this year, positioning Nvidia for continued outsized growth in the coming years.
- Strategic Technology Investments: With ample cash, Nvidia is investing in the AI ecosystem, including licensing Groq's technology and hiring its employees, which should enhance its competitive edge in the inference market and solidify its market position.
- Broadcom's ASIC Advantage: Broadcom (AVGO) leads in application-specific integrated circuit (ASIC) technology, helping clients design efficient custom AI chips, with AI revenue projected to grow fivefold to $100 billion by 2027, indicating strong growth potential.
- Collaboration with Google: Broadcom's collaboration with Google on tensor processing units (TPUs) has attracted multiple companies, with Anthropic placing a $21 billion TPU order, showcasing Broadcom's robust growth prospects in the AI market.
See More
Alphabet's Strong Performance in the AI Market
- Market Share Growth: Alphabet's Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT's 27% share by 2025, demonstrating its competitive edge and market leadership in the AI sector.
- Strong Financial Performance: In 2025, Alphabet generated $402.8 billion in revenue, a 15% increase year-over-year, with operating income nearing $130 billion and an operating margin of 32%, indicating robust profitability amid ongoing growth.
- Capital Expenditure Plans: Alphabet anticipates capital expenditures of $175-$185 billion for 2026, exceeding analyst expectations; however, with $30.7 billion in cash reserves and strong profitability, the company is well-positioned to support its data center expansion.
- Long-Term Debt Financing: Alphabet aims to raise $20 billion through the issuance of 100-year bonds, and despite its long-term debt of $46.5 billion, the company's diversified revenue streams and strong cash flow provide a solid financial foundation for taking on additional debt.
See More
Alphabet's AI Investment and Financial Outlook
- Significant Revenue Growth: Alphabet's revenue reached $402.8 billion in 2025, marking a 15% increase, indicating a robust financial position supported by diversified revenue streams that can sustain future investments.
- Capital Expenditure Plans: Anticipated capital expenditures for 2026 are projected to be between $175 billion and $185 billion, exceeding analyst expectations; despite the high costs of building data centers, Alphabet's cash reserves grew by 30% to $30.7 billion, showcasing its financial strength.
- AI Market Share Increase: Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT, reflecting Alphabet's growing competitiveness in the AI sector, which could lead to higher revenue streams.
- Long-term Debt Financing: Alphabet plans to raise $20 billion through the issuance of 100-year bonds; while its long-term debt stands at $46.5 billion, its strong profitability and diversified revenue sources enable effective debt risk management.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
