LONDON, UK / ACCESSWIRE / February 16, 2018 / Active-Investors has a free review on Microchip Technology Inc. (NASDAQ: MCHP) ("Microchip") following the Company's announcement that it will begin trading ex-dividend on February 20, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date (excluding weekend and holiday) that is by latest at the end of the trading session on February 16, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on MCHP:
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Dividend Declared
On February 06, 2018, Microchip announced that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.3630 per share, reflecting a marginal increase compared to dividend of $0.3625 paid in the previous quarter. The dividend is payable on March 06, 2018, to stockholders of record on February 21, 2018.
"Microchip's financial results in the December quarter produced record high cash flow from operations of $365 million," said Steve Sanghi, Chief Executive Officer, "Our Board of Directors is pleased to declare an increase in our quarterly dividend to a record 36.30 cent per share, which continues to reflect our ongoing commitment to returning value to our stockholders."
Microchip's indicated dividend represents a yield of 1.80%, which is considerably above compared to the average dividend yield of 1.27% for the Technology sector. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 55 times since its inception.
Dividend Insight
Microchip has a dividend payout ratio of 28.3%, which indicates that the Company spends approximately $0.28 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Microchip is forecasted to report earnings of $5.78 for the next year, which is more than three times compared to the Company's annualized dividend of $1.45 per share.
Microchip's cash flow from operations in the third quarter fiscal 2018, ended December 31, 2017, was a record $365 million. As of December 31, 2017, the cash and total investment position on the Company's balance sheet was $1.99 billion. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
About Microchip Technology Inc.
Microchip is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality.
Stock Performance Snapshot
February 15, 2018 - At Thursday's closing bell, Microchip Technology's stock slightly advanced 0.34%, ending the trading session at $82.49.
Volume traded for the day: 3.57 million shares, which was above the 3-month average volume of 2.52 million shares.
Stock performance in the past twelve-month period - up 14.73%.
After yesterday's close, Microchip Technology's market cap was at $18.93 billion.
Price to Earnings (P/E) ratio was at 84.61.
The stock has a dividend yield of 1.76%.
The stock is part of the Technology sector, categorized under the Semiconductor - Broad Line industry. This sector was up 1.5% at the end of the session.
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