This company is a huge Internet of Things benefactor and the stock has been very strong recently. Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, mixed-signal, analog and flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.
The company acquired Microsemi in June of 2018, and most analysts believe that purchase and earlier acquisitions afford Microchip Technology ongoing mergers and acquisitions linked upside potential from cross-selling (to boost sales) and manufacturing synergies (to reduce costs).
Microchip’s sales, margins and earnings per share are somewhat more levered to the cyclical stabilization and recovery that is now upon us than many peers, owing to its relatively more vertically integrated manufacturing network, significant channel inventory reduction over the past seven quarters and elevated financial leverage.
Microchip Technology stock investors now receive a 1.14% yield. The $0.2185 per share dividend is expected to be raised to $0.2295.
The $95 Morgan Stanley price target compares with the $89.54 consensus target and a recent price shy of $78 a share.
Every do-it-yourselfer with a tool kit is well versed in the products of this great company. Snap-On Inc. (NYSE: SNA) manufactures and markets tools, equipment, diagnostics and repair information and systems solutions for professional users worldwide.
The company’s hand tools include wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools and torque measuring instruments. Its power tools include cordless, pneumatic, hydraulic and corded tools. And its tool storage products include tool chests and roll cabinets.
The company also provides handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services and warranty management systems and analytics.
In addition, Snap-On offers solutions for the service of vehicles and industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers and hoists. Further, it provides financing programs to facilitate the sales of its products and support its franchise business.
The company serves the aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education industries, as well as vehicle dealerships and repair centers.
The current dividend has a 2.40% yield. The company is expected to lift the $1.23 per share dividend to $1.30.
Tigress Financial just raised its $289 price target on Snap-On stock to $295. The consensus target is just $236.25, and shares were trading near $203 apiece.
These four top companies are expected to lift the dividends they pay to shareholders, and their stocks are rated Buy across Wall Street. Not only is increasing dividends and returning capital to investors important, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.
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