CHANDLER, Ariz. - Microchip Technology Incorporated (NASDAQ:MCHP), a company specializing in smart, connected, and secure embedded control solutions, has announced a quarterly cash dividend of 45.5 cents per share. The payment, scheduled for December 6, 2024, will be available to shareholders recorded as of November 22, 2024.
This declaration follows a history of consistent dividend payments by Microchip, which began issuing quarterly cash dividends in the third quarter of fiscal year 2003. Since that time, the company has increased its dividend 83 times.
Microchip Technology serves a diverse client base across multiple industries, including industrial, automotive, consumer, aerospace and defense, communications, and computing markets. The company prides itself on providing comprehensive products that aid customers in developing designs that are both cost-effective and market-ready, emphasizing reduced risk and shortened time to market.
The firm is headquartered in Chandler, Arizona, and is recognized for its strong technical support, reliable delivery, and product quality. It caters to approximately 116,000 customers globally.
This dividend announcement is based on a press release statement from Microchip Technology Incorporated.
In other recent news, Microchip Technology has reported Q2 fiscal 2025 results, though specific financial figures were not disclosed. The company experienced a decrease in net sales for the first quarter of the fiscal year 2025, totaling $1.241 billion, a 6.4% drop from the previous quarter. However, non-GAAP net income remained robust at $289.9 million, with earnings per diluted share of $0.53. Analysts have responded to these developments, with Truist Securities downgrading Microchip's stock from Buy to Hold and Mizuho (NYSE:MFG) Securities maintaining an Outperform rating despite lowered revenue forecasts.
In terms of product announcements, Microchip Technology has launched the PIC64HX family of microprocessors for the edge computing market and expanded its Wi-Fi product line with 20 new products. The company also introduced its 101765 family of Voltage-Controlled SAW Oscillators designed for the aerospace and defense markets. These are the recent developments shaping the trajectory of Microchip Technology.
InvestingPro Insights
Microchip Technology's latest dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company currently offers a dividend yield of 2.44%, with a remarkable dividend growth of 18.54% over the last twelve months. This commitment to increasing shareholder value is further underscored by an InvestingPro Tip, which notes that Microchip has raised its dividend for 12 consecutive years.
Despite the positive dividend news, it's important to note that Microchip faces some headwinds. InvestingPro data shows a revenue decline of 24.84% over the last twelve months, with quarterly revenue growth at -45.76%. This aligns with another InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
However, Microchip's financial position remains solid. The company boasts a market capitalization of $40.19 billion and maintains profitability with a P/E ratio of 29.34. An InvestingPro Tip highlights that Microchip's liquid assets exceed its short-term obligations, suggesting a strong balance sheet despite the challenging market conditions.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Microchip Technology, providing deeper insights into the company's financial health and market position.
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