Cisco Systems (
) andOracle (
) are not the only tech companies that pay shareholder
dividends.Microchip Technology (
), a maker of semiconductor products for the automotive,
communications and computer and other markets, also does so.
The Chandler, Ariz.-based firm has rewarded stockholders with
cash dividends since the third quarter of its fiscal 2003.
Microchip has long paid dividends before Cisco and Oracle.
Microchip has raised its dividends by small increments in just
about every quarter since it started paying them. In May, the
company lifted its dividend to 35.35 cents a share from 35.3
cents. That marked its 37th hike since the inception of its
On an annual basis, Microchip pays $1.414 a share. This works
out to a yield of about 3.5%, which is higher than the 2.4% in
the S&P 500. Microchip has one of the highest yields out of
the 16 dividend-paying stocks in the Electronics-Semiconductor
The chip industry is highly cyclical, and this is reflected in
Microchip's earnings history. Profit fell in two of the past five
fiscal years. In May, the company reported flat earnings for its
fiscal 2013 ended March. In fiscal 2012, profit and revenue
dropped 21% and 7%, respectively.
But Microchip has had some good news recently. In June , the
company raised guidance on profit and revenue for its fiscal Q1
2014, which ended June 30. Analysts polled by Thomson Reuters see
earnings rising 21% to $2.28 a share for the current fiscal
Microchip is trading near its best levels since May of 2011
after bouncing off its 10-week moving average. The stock cleared
a lopsided flat base in May, but then traded in choppy fashion