In this article, we discuss 5 semiconductor stocks that pay dividends. If you want to read our detailed analysis of the semiconductor industry and its recent performance, go directly to 10 Semiconductor Stocks that Pay Dividends.
5. Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC)
Dividend Yield as of August 23: 1.48%
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is a Singapore-based semiconductor manufacturing company that also provides electronic assembly solutions.
In Q2 2022, Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) reported strong earnings, posting EPS of $2.09, which beat estimates by $0.50. The company’s revenue of $372 million also surpassed the consensus by $5.89 million. The company’s cash flow generation was strong at $380 million, handily covering its $263 million in dividends and share repurchases.
Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) initiated its dividend policy in 2018 and has raised its dividends twice since then. Currently, it offers a quarterly payout of $0.17 per share, which gives its shares a yield of 1.48%, as of August 23.
As of the close of Q2 2022, 23 hedge funds tracked by Insider Monkey’s database owned stakes in Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC), down from 24 in the previous quarter. The total value of those stakes came in at nearly $191 million. Royce & Associates was the company’s largest stakeholder in Q2, owning stakes worth over $91.3 million.
4. Analog Devices, Inc. (NASDAQ:ADI)
Dividend Yield as of August 23: 1.84%
Analog Devices, Inc. (NASDAQ:ADI) is an American multinational semiconductor company that specializes in data conversion and power management technology. The company’s fiscal Q3 results were appreciated by Wall Street analysts, as both Deutsche Bank and Truist raised their price targets on the stock in August to $170 and $209, respectively.
Analog Devices, Inc. (NASDAQ:ADI) remained committed to its shareholder obligations during its fiscal Q3, repurchasing shares worth $906 million and paying $394 million in dividends. The company’s revenue also jumped by 76.7% year-over-year to $3.1 billion. In addition to this, its operating cash flow stood at $4.3 billion, while free cash flow was recorded at $3.7 billion.
Analog Devices, Inc. (NASDAQ:ADI) holds a strong dividend history, raising its dividends consistently for the past 18 years and has paid dividends for 73 quarters straight. Its quarterly dividend stands at $0.76 per share, with the shares boasting a dividend yield of 1.84%, as of August 23.
As of the close of Q2 2022, 61 of the hedge funds tracked by Insider Monkey owned positions in Analog Devices, Inc. (NASDAQ:ADI), down from 67 in the preceding quarter. Those stakes were collectively valued at over $4.2 billion.
3. Texas Instruments Incorporated (NASDAQ:TXN)
Dividend Yield as of August 23: 2.66%
Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based manufacturing company that designs and produces semiconductors and various integrated circuits. The number of hedge funds that own stakes in the company grew to 55 in Q2 2022, from 46 in the previous quarter, according to Insider Monkey’s data. Those stakes held a combined value of over $1.6 billion.
Texas Instruments Incorporated (NASDAQ:TXN) reported Q2 cash flow from operations of $8.7 billion. The company’s free cash flow stood at $5.9 billion, representing 30% of its revenue. Its dividends were well-covered within its FCF, amounting to $1.06 billion during the quarter. In addition to this, the company generated $5.2 billion in revenue, up 13.8% from the same period last year.
Texas Instruments Incorporated (NASDAQ:TXN) pays a quarterly dividend of $1.15 per share and its shares have a dividend yield of 2.66%, as recorded on August 23. The company maintains a strong 18-year streak of dividend growth.
In June, Benchmark initiated coverage of Texas Instruments Incorporated (NASDAQ:TXN) with a ‘Buy’ rating and $205 price target, acknowledging the company’s larger product portfolio and distribution reach.
2. Broadcom Inc. (NASDAQ:AVGO)
Dividend Yield as of August 23: 3.08%
An American semiconductor company, Broadcom Inc. (NASDAQ:AVGO) showcased strong financial results in Q2 2022, topping the Street’s consensus on various fronts. The company’s revenue for the quarter came in at $8.1 billion, which presented 22.5% growth from the same period last year. The firm also generated $4.2 billion in free cash flow during the quarter, which smoothly covered its dividend payments of $1.7 billion.
Broadcom Inc. (NASDAQ:AVGO) holds an 11-year track record of dividend growth. The company pays a quarterly dividend of $4.10 per share and its shares have a yield of 3.08%, as of August 23.
In July, Deutsche Bank set a $635 price target on Broadcom Inc. (NASDAQ:AVGO) with a ‘Buy’ rating on the shares. The firm believes that the company is well-positioned to survive the ongoing supply chain issues.
According to Insider Monkey’s Q2 data, Fisher Asset Management was the largest stakeholder of Broadcom Inc. (NASDAQ:AVGO), owning a stake worth over $716 million. In addition to this, 65 other hedge funds owned stakes in the company in Q2, with a total value of over $4 billion.
ClearBridge Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter. Here is what the firm had to say:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
1. Intel Corporation (NASDAQ:INTC)
Dividend Yield as of August 23: 4.29%
Intel Corporation (NASDAQ:INTC) is an American multinational tech and semiconductor company. In August, Northland lifted its price target on the stock to $55 with an ‘Outperform’ rating on the shares, highlighting the company’s manufacturing capability.
For its Q2 2022, Intel Corporation (NASDAQ:INTC) reported revenue of $15.3 billion, down 17.3% from the same period last year. Its operating cash flow stood at $809 million. The company expects its revenue to fall somewhere between $65 billion and $68 billion during its FY22, versus the consensus of $74.3 billion. Intel Corporation (NASDAQ:INTC) pays a quarterly dividend of $0.365 per share, with INTC shares yielding 4.29% as of August 23. The company has been raising its dividend consistently for the past seven years.
As of the end of Q2 2022, 65 of the hedge funds tracked by Insider Monkey owned stakes in Intel Corporation (NASDAQ:INTC), down from 76 in the previous quarter. Those stakes held a collective value of over $2.5 billion.
Baron Funds mentioned Intel Corporation (NASDAQ:INTC) in its Q1 2022 investor letter. Here is what the firm had to say:
“Intel’s (NASDAQ:INTC) capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”
You can also take a look at 10 Small-Cap Stocks that Pay Dividends and 10 Safe Dividend Stocks with Over 4% Yield
