Singapore-based chip designerAvago Technologies (
) has been raising its dividend often.
In the past year and a half, the company has bumped up its
quarterly dividend six times. It tends to raise the amount by a
penny or two at a time.
The company most recently increased its dividend in early
September, raising the quarterly payment to 23 cents a share from
Avago's dividend has more than tripled since it first gave
shareholders a dividend in December 2010.
At the new rate, Avago's annualized dividend equates to 92
cents a share, for a yield of about 2.1%, which is among the best
in the Electronics-Semiconductor Fabless industry group. But it
is lower than that of the S&P 500's yield.Silicon Motion
), a Taiwanese chip designer, has the highest yield in the group
Besides dividends, Avago has also returned cash to
shareholders through stock buybacks. In April, the company
unveiled a repurchase program for 20 million of its own
Avago's earnings and sales fell in 2009, but both have grown
each year since. Analysts polled by Thomson Reuters see profit
rising 2% this year. Growth is expected to pick up to 14% in
2014. Both estimates were recently revised to the upside.
Because of the drop in earnings in 2009, Avago's five-year
Earnings Stability Factor is 34 on a scale of 0 to 99 in which
smaller numbers represent steady performance. Avago's three-year
Earnings Stability Factor is a much better 9.
About 41% of Avago's sales come from China. The U.S. accounted
for about 16% of total revenue in 2012. Its top 10 customers made
up 62% of total sales.
Avago's stock has perked up in recent weeks, partly due to
news that its parts are inApple's (
) new iPhone 5S and 5C models.