Microchip Technology (MCHP) Declares $0.36 Dividend

Microchip Technology said on February 2, 2023 that its board of directors declared a regular quarterly dividend of $0.36 per share ($1.43 annualized). Shareholders of record as of February 17, 2023 will receive the payment on March 7, 2023. Previously, the company paid $0.33 per share.

At the current share price of $85.33 / share, the stock's dividend yield is 1.68%. Looking back five years and taking a sample every week, the average dividend yield has been 2.62%, the lowest has been 0.53%, and the highest has been 5.26%. The standard deviation of yields is 0.88 (n=237).

The current dividend yield is 1.07 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.39. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.79%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 1.98% Downside

As of February 3, 2023, the average one-year price target for Microchip Technology is $83.64. The forecasts range from a low of $62.62 to a high of $131.25. The average price target represents a decrease of 1.98% from its latest reported closing price of $85.33.

The projected annual revenue for Microchip Technology is $8,543MM, an increase of 11.84%. The projected annual EPS is $6.05, an increase of 81.62%.

Fund Sentiment

There are 1983 funds or institutions reporting positions in Microchip Technology. This is an increase of 62 owner(s) or 3.23%.

Average portfolio weight of all funds dedicated to US:MCHP is 0.3838%, an increase of 5.4197%. Total shares owned by institutions decreased in the last three months by 0.37% to 600,501K shares.

What are large shareholders doing?

Dodge & Cox holds 31,103,061 shares representing 5.66% ownership of the company. In it's prior filing, the firm reported owning 32,228,436 shares, representing a decrease of 3.62%. The firm increased its portfolio allocation in MCHP by 11.01% over the last quarter.

T. Rowe Price Investment Management holds 22,613,876 shares representing 4.11% ownership of the company.

DODGX - Dodge & Cox Stock Fund holds 19,980,466 shares representing 3.63% ownership of the company. In it's prior filing, the firm reported owning 20,564,666 shares, representing a decrease of 2.92%. The firm increased its portfolio allocation in MCHP by 9.93% over the last quarter.

Aristotle Capital Management holds 18,465,720 shares representing 3.36% ownership of the company. In it's prior filing, the firm reported owning 18,527,242 shares, representing a decrease of 0.33%. The firm increased its portfolio allocation in MCHP by 10.26% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 16,470,302 shares representing 2.99% ownership of the company. In it's prior filing, the firm reported owning 16,328,503 shares, representing an increase of 0.86%. The firm increased its portfolio allocation in MCHP by 10.48% over the last quarter.

Microchip Technology Background Information
(This description is provided by the company.)

Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. The company's solutions serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality.

This story originally appeared on Fintel.