Microchip Technology (MCHP) will raise its quarterly dividend by another 9.1 percent to $0.276 per share. This follows a dividend hike of 6.2 percent to 23.20 cents per share in Q1 and marks 20 years in a row of increased dividends by the semiconductor company.
The next MCHP dividend is payable on June 3, 2022, to stockholders of record on May 20, 2022. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 70 times since its inception. A new $1.10 per share annual dividend will yield 1.7% at a stock price of $64.
“Microchip’s financial performance in the March 2022 quarter was very strong, resulting in solid cash generation and significant debt reduction,” said Steve Sanghi, Executive Chair. “Today, our Board of Directors approved a sequential increase in our dividend of 9.1% to 27.6 cents per share, up from our February dividend of 25.3 cents per share. Also, our Board is now targeting to increase our dividend at least 9% sequentially, which is up from the 7% sequential increases communicated at our Investor and Analyst Day on November 8, 2021. These actions reflect confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning capital 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. The company typically raises its dividend a little bit every quarter but doesn't do big dividend hikes like many other semiconductor companies.