Microchip Technology (MCHP) will raise its quarterly dividend by 0.1 percent to $0.3675 per share in the second quarter of 2020. This follows similar dividend hikes in each of the last couple of quarters by the semiconductor products maker.

The next dividend is payable on June 4, 2020 to stockholders of record on May 21, 2020. The new annual dividend rate of $1.47 per share yields 1.6% at a stock price of $89.70.

“Microchip’s financial performance in the March 2020 quarter was very good with the backdrop of a very uncertain economic environment,” said Steve Sanghi, Chief Executive Officer in the company's press release dated May 7, 2020, announcing this dividend hike.  “Our Board is pleased to declare an increase in our quarterly dividend to a record 36.75 cents per share, which continues to reflect confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning value to our stockholders.”

Microchip Technology Incorporated manufactures specialized semiconductor products used for  embedded control applications. Its product portfolio targets the automotive, communications, computing, consumer and industrial control markets. Microchip is headquartered in Chandler, Arizona. Microchip was incorporated in Delaware in 1989 and initiated quarterly cash dividend payments in the third quarter of fiscal year 2003.