5 Best Debt Free Dividend Stocks to Buy

2. Silicon Motion Technology Corp. (NASDAQ:SIMO)

Number of Hedge Fund Holders: 35

Dividend Yield as of April 19: 3.10%

Taiwan-based Silicon Motion Technology Corp. (NASDAQ:SIMO) is a leading developer of NAND flash controllers for SSDs and other solid state storage devices. Its customers include most of the NAND flash vendors, storage device module makers and leading OEMs.

In May 2022, Silicon Motion Technology Corp. (NASDAQ:SIMO) announced that it had entered into a definitive agreement with MaxLinear, Inc. (NYSE:MXL) under which MaxLinear, Inc. (NYSE:MXL) will acquire Silicon Motion Technology Corp. (NASDAQ:SIMO) in a stock and cash transaction that implies a $3.8 billion for the company.

As part of the transaction, MaxLinear, Inc. (NYSE:MXL) will pay a cash consideration of $93.54 and a stock consideration of 0.388 common shares of the company per each American Depositary Share (ADS) of Silicon Motion Technology Corp. (NASDAQ:SIMO).

Based on the share price of MaxLinear, Inc. (NYSE:MXL) as of April 26, this represents a total consideration of $104.93 per ADS of Silicon Motion Technology Corp. (NASDAQ:SIMO) which is 67.4% more than the current price of one ADS.