Microchip Technology hikes dividend by 5.9%

Microchip Technology (MCHP) will raise its quarterly dividend by another 5.9 percent to 41.3 cents quarterly in Q2 of 2021. This is the second dividend hike announced by MCHP in 2021 for a total increase of 12.1 percent.

The next quarterly dividend is June 4, 2021 to stockholders of record on May 21, 2021. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 67 times since its inception. The new annual dividend rate of approximately $1.65 per share yields 1.1% at a stock price of $149.

Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003. Currently the company pays approximately $430 million in dividends to shareholders annually. Because of the much bigger dividend hikes announced so far in 2021 the average dividend growth rate in the last five years jumps from 0.6 percent to 2.8 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.