Microchip Technology (MCHP) will raise its quarterly dividend by another 0.1 percent to $0.3685 per share in the 4th quarter of 2020. This follows similar dividend hikes in each of the last couple of quarters by the semiconductor products maker. This year Microchip has announced four dividend hikes so far for a total increase of 0.5 percent, matching last year's dividend increase.

The next quarterly dividend is payable on December 4, 2020 to stockholders of record on November 20, 2020. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 65 times since its inception. The new annual dividend rate of approximately $1.47 per share yields 1.2% at a stock price of $125.29.

In a press release dated November 5, 2020 the company comments on the dividend hike:
“Microchip’s financial performance in the September 2020 quarter was strong given the uncertain economic conditions driven by the COVID-19 pandemic,” said Steve Sanghi, Chief Executive Officer. “Our Board is pleased to declare an increase in our quarterly dividend to a record 36.85 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 initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 64 times since its inception. Currently the company pays approximately $372 million in dividends to shareholders annually.

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. The company typically raises its dividend a little bit every quarter but doesn't do big dividend hikes like many other semiconductor companies.