These Were Last Week’s 10 Best Dividend Stocks

8. Microchip Technology Incorporated (NASDAQ:MCHP)

Dividend yield: 3.15%

Dividend payout ratio: 317.72%

Ex-Dividend Date: February 24, 2025

Number of Hedge Funds: 37

Between February 10 and February 14, 2025, shares of Microchip Technology Incorporated (NASDAQ:MCHP) appreciated by 6.33%.

The company is engaged in developing and selling innovative and controlled solutions in the U.S. and in many parts of Europe and Asia. Though the reported earnings per share of $0.13 of the company stands low compared to the consensus estimate of $0.15, the investors hold a positive view of the stocks. The rising demand for semiconductors in the automotive sector and industrial applications contributes to a positive outlook. Additionally, the performance of the extensive product range, including the Total System Solution offered by the company, contributes to its growth.

Microchip Technology Incorporated (NASDAQ:MCHP) offers a dividend yield of 3.15%. The company uses a dividend payout ratio of 317.72% to back this yield. The high yield suggests a risky investment since the company uses 3 times its earnings to pay dividends. The company’s shares are held by 37 hedge fund portfolios monitored by Insider Monkey at the end of Q3 2024. It signals significant institutional interest in the stocks of Microchip Technology Incorporated. Income-focused investors should consider buying shares before the ex-dividend date of March 13, 2025, if they want to benefit from the dividend payment on March 7, 2025.