24/7 Wall St. » ISIL

Dividend Watch: Which Tech Player Will Have the Best Dividend? (INTC, MSFT, MXIM, ISIL, MCHP, DLR)

Administrator — Wed, 11 May 2011 15:17:22 +0000

Intel Corporation (NASDAQ: INTC) was already one of the highest dividend yields in the technology sector. Intel just again raised its dividend for the second time over the last six months. This latest hike was a 16% increase to $0.21 per quarter or $0.84 on an annualized basis.

When Intel raised its dividend back in November of 2010, it was by 15%. This will have some ramifications for other chip stocks which have a high payout as well. Dividends are generally not lowered, so a new dividend hike today is meant to be a signal that Intel will be able to both afford all of its future capital spending needs and will be able to have enough gross income left over to pay this dividend and even to repurchase shares of its common stock for the foreseeable future.

Even after a more than 2% gain to $23.50 today, Intel’s new dividend yield will jump up to 3.55% on an annualized basis. We want to compare this dividend today to that of Microsoft Corporation (NASDAQ: MSFT), Maxim Integrated Products Inc. (NASDAQ: MXIM), Intersil Corporation (NASDAQ: ISIL), Microchip Technology Inc. (NASDAQ: MCHP), and even for Digital Realty Trust Inc. (NYSE: DLR).

Microsoft Corporation (NASDAQ: MSFT) currently pays 2.50%. With the $8.5 billion cash acquisition of Skype, we would not be looking for a massive hike to its payout. We also now believe that Microsoft may choose to make acquisitions rather than to opt for that rumored huge one-time dividend.

Maxim Integrated Products Inc. (NASDAQ: MXIM) has a dividend yield of 3.00% dividend yield, Intersil Corporation (NASDAQ: ISIL) pays a 3.1% dividend yield, and Microchip Technology Inc. (NASDAQ: MCHP) pays a 3.4% dividend yield. These were all higher yields in prior reference but that is because shares have appreciated after earnings season now.

Xilinx Inc. (NASDAQ: XLNX) already took its $0.16 per share per quarter dividend up to $0.19 per share per quarter. The annualized payout comes to $0.76 and shares have risen to $35.75 since its dividend hike reaction when shares trading at $32.10. That yield then was 2.35% but now it is only about 2.1%.

Perhaps the best of the best dividend is in technology’s landlord of the cloud and the internet. This is seen in the real-estate investment trust of Digital Realty Trust Inc. (NYSE: DLR). The REIT is far from a chip company but it is a meant to represent a pure-play on renting office space to software, information technology, real technology, and data center companies. Its yield at the most recent $0.68 per quarter or $2.72 per year would be about 4.45% based upon a $61.00 share price. When we highlighted this REIT in mid-February, the share price was around $55.80.

JON C. OGG

Filed under: Dividend, Semiconductor, Shareholder Issues, Technology Companies Tagged: DLR, INTC, ISIL, MCHP, MSFT, MXIM

Daily Dividend: Xilinx Highlights High Yield Tech Dividends (XLNX, ALTR, INTC, MXIM, ISIL, MCHP, DLR)

Administrator — Mon, 14 Mar 2011 15:01:58 +0000

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

Filed under: Dividend, Semiconductor, Technology Companies Tagged: ALTR, DLR, INTC, ISIL, MCHP, MXIM, XLNX

Grabbing For High Dividends in Tech (DLR, MXIM, ISIL, MCHP, INTC, MSFT)

Administrator — Wed, 16 Feb 2011 17:25:42 +0000

Investors love dividends and they love technology stocks. By and large it is hard to find very high dividend payout in technology. There are several chip stocks which pay over 3% in current dividend yields but they are few and far between. There is at least one way that technology investors can try to participate in some growth and still collect nearly 4% in income. What about the technology landlord? Digital Realty Trust, Inc. (NYSE: DLR) is a real estate investment trust that caters to technology companies.

The REIT pays roughly a 3.9% dividend yield. At $55.80, its 52-week range is $47.42 to $64.17 and it has a market cap of right about $5 billion. Throughout the recession, Digital Realty (or Digital REIT by our abbreviation) has managed to grow the dividend. The current rate has been $0.53 per quarter. Thomson Reuters has estimates of $3.29 looking back at 2010 and $3.85 EPS for 2011. As a REIT, it pays out 90% of income to owners. Analysts have a consensus price target of $62.35.

The company claims to have the world’s largest wholesale data centers. Companies range from large technology companies to financial providers who need their technology managed. It operates more than 95 properties consisting of 16.7 million rentable square feet throughout America, Europe, and the Pacific Rim.

The higher yields out there in technology are still low compared to utilities and what used to be paid out in banks and financials before the credit crunch. A few other technology companies with relatively high dividends are Maxim Integrated Products Inc. (NASDAQ: MXIM) with a 3.2% yield, Intersil Corporation (NASDAQ: ISIL) has a yield of roughly 3.6%, Microchip Technology Inc. (NASDAQ: MCHP) pays a dividend of roughly 3.7% and that has been increased through time.

There is income if you go much larger up the ladder as well. Intel Corporation (NASDAQ: INTC) also generates billions in free cash and investors can reach up to get a yield of 3.3% at the current price. Microsoft Corporation (NASDAQ: MSFT) generates billions and billions in cash and pays roughly a 2.3% yield. Unfortunately, those investments have generated very little in long-term capital gains over the last decade. Unfortunately, it has been a tough sell telling investors that these are income stocks.

JON C. OGG

Filed under: Dividend, REIT, Semiconductor, Technology Companies Tagged: DLR, INTC, ISIL, MCHP, MSFT, MXIM

Early Bird Technology Analyst Upgrades & Downgrades (AAPL, GOOG, ELX, ISIL, ITRI, GRMN)

247wallst — Tue, 06 Jan 2009 06:47:33 +0000

We have some key technology and consumer electronics stocks which are seeing upgrades and downgrades from Wall Street analysts this Tuesday morning. Here are some of the calls we have seen from this morning and from after yesterday’s close:

Apple (NASDAQ: AAPL) Raised to Outperform at Oppenheimer.
Google (NASDAQ: GOOG) Raised to Neutral from Sell at Merriman Curhan Ford.
Emulex (NYSE: ELX) Cut to Neutral at Goldman Sachs.
Intersil (NASDAQ: ISIL) Cut to Neutral at JPMorgan.
Itron (NASDAQ: ITRI) Cut to Neutral at JPMorgan; started as Buy at Merriman Curhan Ford.
Garmin (NASDAQ: GRMN) Cut to Sell at Goldman Sachs.

Jon C. Ogg
January 6, 2009

Posted in Analyst Calls, Technology Companies Tagged: AAPL, ELX, GOOG, GRMN, ISIL, ITRI

The 52-Week Low Club (CHK)(WFT)(RIG)(MSCC)(ISIL)

247wallst — Thu, 04 Dec 2008 15:59:12 +0000

Chesapeake Energy (CHK) National gas supply levels fall. Drops to $11.54 from 52-week high of $74.

Weatherford International (WFT) Oil prices hurting drilling equipment firms. Plunges to $8.32 from 52-week high of $49.98.

Transocean (RIG) Another drilling service firm. Sells down to $46.06 from 52-week high of $163.

Microsemi Corporation (MSCC) Did CEO lie about his degree. Dips to $11.27 from 52-week $28.50.

Intersil (ISIL) Cuts outlook. Moves off to $7.53 from $29.84.

Douglas A. McIntyre

Posted in HI/LOW Tagged: CHK, ISIL, MSCC, RIG, WFT

Top Pre-Market Analyst Downgrades (ACN, ADBE, DOX, CREL, CTRP, IACI, ISIL, KLAC, SAPE, SSCC)

247wallst — Thu, 04 Dec 2008 08:03:49 +0000

These are some of the top pre-market analyst downgrades and cautious calls we have seen this Thursday morning:

Accenture (ACN) Cut to Neutral at Goldman Sachs.
Adobe Systems (ADBE) Cut to Neutral at Baird.
Amdocs (DOX) Cut to Neutral at Goldman Sachs.
Corel (CORL) Cut to Neutral at Piper Jaffray.
Ctrip.com (CTRP) Cut to Neutral at Goldman Sachs.
IAC/Interactive (IACI) Cut to Equal-Weight at Barclays.
Intersil (ISIL) Cut to Neutral at Goldman Sachs.
KLA-Tencor (KLAC) Cut to Hold at Citigroup.
Sapient (SAPE) Cut to Sell at Goldman Sachs.
Smurfit-Stone (SSCC) Cut to Neutral at Credit Suisse.

Jon C. Ogg
December 4, 2008

Posted in Analyst Calls Tagged: ACN, ADBE, CREL, CTRP, DOX, IACI, ISIL, KLAC, SAPE, SSCC

Top Pre-Market Analyst Downgrades (AZO, CX, FNM, ISIL, MHK, NVDA, PETM, POR, TSCO, UST)

247wallst — Mon, 08 Sep 2008 06:34:12 +0000

These are some of the larger impact calls from analysts with downgrades or negative calls we are seeing this Monday morning with more than two hours to the open:

AutoZone (AZO) Cut to Neutral at Goldman Sachs.
Cemex (CX) Cut to Hold at Deutsche Bank.
Fannie Mae (FNM) and Freddie Mac (FRE) Cut to Sell from Buy at Citigroup.
Intersil (ISIL) Cut to Neutral at UBS.
Mohawk Industries (MHK) Cut to Underweight at JPMorgan.
NVIDIA (NVDA) Cut to Sell at UBS.
PetSmart (PETM) Cut to Neutral at Goldman Sachs.
Portland General Electric (POR) Cut to Neutral at Goldman Sachs.
Tractor Supply (TSCO) Cut to Neutral at UBS.
UST (UST) Cut to Neutral at UBS.

Jon C. Ogg
September 8, 2008

Top 10 Pre-Market Analyst Calls (DRIV, ISIL, MUR, NAPS, BTU, RNWK, SINA, URI, VVUS, YRCW)

247wallst — Thu, 03 Jan 2008 07:45:21 +0000

These are not the only impacting analyst calls this morning, but these are most of the initial calls being focused on by 247WallSt.com:

Digital River (DRIV) raised to Outperform from Neutral at Credit Suisse.
Intersil (ISIL) raised to Buy from Neutral at UBS.
Murphy Oil (MUR) downgraded to Peer Perform from Outperform at Bear Stearns.
Napster (NAPS) started as an "Underperform" at Bear Stearns.
Peabody Energy (BTU) downgraded to Neutral from Buy at Merrill Lynch.
Real Networks (RNWK) started as Outperform at Bear Stearns.
Sina (SINA) raised to Buy from Neutral at Piper Jaffray.
United Rentals (URI) raised to Buy from Neutral at UBS.
Vivus (VVUS) started as Overweight at J.P.Morgan.
YRC Worldwide (YRCW) downgraded to Underperform from Market Perform at Wachovia.

Jon C. Ogg
January 3, 2008

Top 10 Pre-Market Analyst Calls (AET, RATE, CELG, DE, FNM, FRE, GRP, ISIL, PHG, SGP, TDW)

247wallst — Mon, 26 Nov 2007 07:45:53 +0000

Aetna (AET) raised to Overweight at JPMorgan.
Bankrate (RATE) raised to Outperform at Bear Stearns.
Celgene (CELG) raised to Buy at Banc of America.
Deere (DE) raised to Buy at Banc of America.
Fannie Mae (FNM) and Freddie Mac both Downgraded to Neutral from Buy at UBS.
Grant Prideco (GRP) raised to Buy at UBS.
Intersil (ISIL) downgraded to Hold at Jefferies.
Philips Electonics (PHG) raised to Buy at Deutsche Bank.
Schering Plough (SGP) started as Buy at Goldman Sachs.
Tidewater (TDW) raised to Buy at Jefferies.

Jon C. Ogg
November 26, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Goldman Sachs Pairs Trade: Long Maxim, Sell Intersil (MXIM, ISIL)

247wallst — Thu, 04 Oct 2007 07:30:01 +0000

Maxim Integrated Products (MXIM) has found itself in a strange predicament over its listing status, but Goldman Sachs doesn’t seem to care. Maxim (MXIM) is being added to Goldman Sachs’ Conviction Buy List, although it says there is no change to above-consensus estimates or to the 14% projected upside at a $33 price target. Goldman is adding Intersil (ISIL) to its Conviction Sell List, although it already has a sell rating on the shares. Goldman is not changing its $29 target with 13% downside.

Interestingly enough, the basis for this call appears to be a pairs trade (arbitrage on price moves) with a LONG MXIM and SHORT ISIL thesis. It is based upon valuation gaps of nearly 30% on 2008 P/E ratio estimates and a 50% gap on EBITDA projections, despite estimates of 11-13% earnings growth for both. The 20% underperformance of MXIM along with the delisting are looked at for a reversion. Solid trends are also noted at both companies, although Goldman Sachs noted that this looks priced in at ISIL based upon positive pre-announced earnings (Goldman believes this is not priced in on MXIM). There is even a note that a possible market inefficiency exists due to Thomson using GAAP EPS for MXIM and non-GAAP EPS for ISIL.

Jon C. Ogg
October 4, 2007