Microchip Technology As of February 16, 2021 ticker dps (an.) 2021 hike 2020 hike 2019 hike
MCHP $1.56 5.8% 0.5% 0.5%
Business yield Hike yrs 5 yr CAGR freq. paid since
Semiconductor Products 1.0% 19 1.6% Quarter 2003
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MCHP has just announced the biggest dividend hike in years © LOGO MICROCHIP TECHNOLOGY INC
MCHP has just announced the biggest dividend hike in years © LOGO MICROCHIP TECHNOLOGY INC

Microchip Technology (MCHP) will raise its quarterly dividend by 5.8 percent to 39 cents quarterly in 2021. This comes after small dividend hikes of 0.1 percent in the previous quarters by the semiconductor products maker. In 2020 Microchip has announced four dividend hikes for a total increase of 0.5 percent, matching the dividend increase for 2019. 

The next quarterly dividend is payable March 8, 2021 to stockholders of record on February 22, 2021. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 66 times since its inception. The new annual dividend rate of approximately $1.56 per share yields 1.1% at a stock price of $145.

In a press release dated Feb 4, 2021, the company comments on the dividend hike: “Microchip’s financial performance in the December 2020 quarter was strong driving significant cash generation and debt reduction,” said Steve Sanghi, Chief Executive Officer. “As we continue to make significant progress towards our debt reduction goals, our Board has decided to return additional cash to our stockholders through a higher dividend as part of our cash return strategy. Our Board is pleased to declare a 5.8% increase in our quarterly dividend to a record 39 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. Currently the company pays approximately $406 million in dividends to shareholders annually. Because of the much bigger dividend hike just announced for Q1 of 2021 the average dividend growth rate in the last five years jumps from 0.6 percent to 1.6 percent 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.

Dividend Calendar

Look at the complete list of upcoming events
Ex-date Ticker Yield YTD hike
Mar 04 WY 1.9% %
Mar 04 D 3.5% 0.0%
Mar 04 BAC 2.1% 0.0%
Mar 04 PEP 3.0% 0.0%
Mar 04 SEE 1.5% 0.0%
Mar 04 AJG 1.6% 6.7%
Mar 04 LIN 1.5% 0.0%
Mar 04 KMB 3.5% 6.5%
Mar 04 BLK 2.3% 13.8%
Mar 04 TT 1.6% 11.3%