Broadcom Limited (NASDAQ:AVGO) Q4 2019 Earnings Conference Call - Final Transcript
Dec 12, 2019 • 05:00 pm ET
setting to target, which impacts 2020. Looking beyond fiscal '20, we expect to continue to expand our operating margins organically and are targeting 55% by fiscal 2022. Now on to capital allocation, we remain committed to returning approximately 50% of our prior year free cash flow to stockholders in the form of cash dividends. With that on the dividend based on approximately $9 billion of free cash flow after M&A and related items that we generated in fiscal 2019, we are increasing our target quarterly common stock cash dividends starting this quarter for $3.25 per share. This constitutes an increase of 23%.
We plan to maintain this dividend payout throughout the year subject to quarterly Board approval, which means we plan to pay out just over $5 billion in cash dividends in fiscal '20. Consistent with our capital allocation policy, we will reassess the dividend this time next year based on our fiscal '20 free cash flow from operations results. In addition, we plan to pay down approximately $4 billion in debt in fiscal '20 as part of our commitment to maintain our investment grade credit rating.
That concludes my prepared remarks. During the Q&A portion of today's call, please limit yourselves to one question each, so we can accommodate as many analysts as possible. Operator, please open up the call for questions.