Xilinx Inc. (NASDAQ: XLNX) had a business update this morning that at least showed a reaffirmed guidance. Many analysts will be focusing on the highlights for the semiconductor segment, but we are focusing on the dividend hike that was seen this morning. More importantly, this signals how the only real safe dividends out there for technology investors are limited mostly to chip stocks.
Xilinx took its $0.16 per share per quarter dividend up to $0.19 per share per quarter this morning. The annualized payout comes to $0.76 and with a share price of $32.10 it generates a dividend yield for investors of about 2.35%. That might not sound like much on the surface but it is a high-yield for a technology stock. This may actually put the heat on Altera Corporation (NASDAQ: ALTR) as the company’s closest similar company due to its paltry 0.6% dividend yield. What is interesting is that Altera is up considerably more than Xilinx over the last one-year and six-months, but not over the last quarter.
Some other chip stocks with relatively high dividends are as follows:
Intel Corporation (NASDAQ: INTC) actually has a 3.5% dividend yield.
Maxim Integrated Products Inc. (NASDAQ: MXIM) pays a 3.3% dividend yield
Intersil Corporation (NASDAQ: ISIL) pays a 4.1% dividend yield
Microchip Technology Inc. (NASDAQ: MCHP) pays a 3.9% dividend yield.
The biggest dividend and perhaps safest dividend of all in technology is one that many have sort of overlooked as it is technically ‘technology’s landlord’ in the form of a REIT. Digital Realty Trust, Inc. (NYSE: DLR) currently pays a 4.8% dividend yield.
Most investors think that they cannot find high dividend yields in technology. That is still mostly true, but not in semiconductor-related businesses.
JON C. OGG