Microchip increases quarterly dividend 25.7% y/y to 45c per share

Microchip announced that its Board of Directors declared a quarterly cash dividend on its common stock of 45c per share. The dividend is payable on March 8, 2024, to stockholders of record on February 23, 2024. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 80 times since its inception. “Microchip’s financial performance in the December 2023 quarter fell short of our guidance, however, cash generation remained strong and we continued to make progress towards our capital return strategy,” said Steve Sanghi, Executive Chair. “Today, our Board of Directors approved a year-over-year increase in our dividend of 25.7% to 45.0 cents per share, up from our February 2023 dividend of 35.8 cents per share. This represents 86 consecutive quarters of dividend payments for Microchip and reflects confidence in the cash-generating capability of our business, as well as our ongoing commitment to returning capital to our stockholders. Despite the current market dynamics, we remain committed to return 100% of our adjusted free cash flow to shareholders by the March 2025 quarter.”