Avago Technologies Limited
), a leading semiconductor manufacturer, recently announced an
11.8% year-over-year hike in its dividend payout to a quarterly
payment of 19 cents per share or 76 cents on an annualized basis.
The second quarter fiscal 2013 dividend is payable in cash on Apr
4 to shareholders of record as of Mar 25.
Based on the closing price of $36.00 on Mar 15, 2013, the
proposed dividend affirms a yield of 2.1%. A steady dividend
payout is part of the long-term strategy of Avago to provide
attractive risk-adjusted returns to its stockholders. In
addition, decent dividend increases at periodic intervals have
been one of the company's most attractive features.
Avago had earlier raised the quarterly dividend payout from 16
cents to 17 cents per share or from 64 cents to 68 cents on an
annualized basis in Dec 2012. Prior to that, Avago raised its
quarterly dividend three times in 2012 - in September (from 15
cents to 16 cents per share), in June (from 13 cents to 15
cents), and in March (from 12 cents to 13 cents).
The company also has a share repurchase program in place, under
which it repurchased shares worth $132 million in first quarter
fiscal 2013. Over the years, Avago has consistently returned
significant cash to its shareholders through dividends and share
With an expertise in compound semiconductor design and
processing, Avago is a premier designer, developer and global
supplier of a broad range of analog, mixed signal and
optoelectronics components and subsystems. The company boasts
over 4,200 patents serving three primary target market segments:
wireless communications, wired infrastructure, and industrial and
Avago faces stiff competition from other players in the market
Cabot Microelectronics Corporation
PLX Technology Inc.
) , each carrying Zacks Rank #1 (Strong Buy). However, Avago
presently has a Zacks Rank #3 (Hold).
AVAGO TECHNOLOG (AVGO): Free Stock Analysis
CABOT MICROELEC (CCMP): Free Stock Analysis
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