Understanding the Dividend Dynamics of Skyworks Solutions Inc
Skyworks Solutions Inc(SWKS, Financial) recently announced a dividend of $0.68 per share, payable on 2024-03-12, with the ex-dividend date set for 2024-02-16. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Skyworks Solutions Inc's dividend performance and assess its sustainability.
What Does Skyworks Solutions Inc Do?
Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.
A Glimpse at Skyworks Solutions Inc's Dividend History
Skyworks Solutions Inc has maintained a consistent dividend payment record since 2014, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since then, earning the status of a dividend achiever—a title reserved for companies with at least a decade of consecutive dividend increases.
Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Skyworks Solutions Inc's Dividend Yield and Growth
Skyworks Solutions Inc currently boasts a 12-month trailing dividend yield of 2.48% and a forward dividend yield of 2.57%, indicating anticipated dividend increases over the next year. The company's annual dividend growth rate over the past three years was 11.80%, which climbed to 13.60% when extended over a five-year period. Consequently, the 5-year yield on cost for Skyworks Solutions Inc's stock is approximately 4.69% as of today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a crucial metric for assessing the sustainability of a company's dividend, and Skyworks Solutions Inc's ratio stands at 0.35 as of 2023-12-31. This indicates that the company retains a substantial part of its earnings, which bodes well for future growth and financial resilience. The company's profitability rank is impressive at 9 out of 10, reflecting strong earnings potential compared to its peers. This is supported by a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the continuation of dividend payments. Skyworks Solutions Inc's growth rank of 9 out of 10 suggests a favorable growth trajectory. The company's revenue per share and 3-year revenue growth rate of 14.70% per year indicate a robust revenue model. Moreover, Skyworks Solutions Inc's 3-year EPS growth rate of 20.50% per year and a 5-year EBITDA growth rate of 14.40% further demonstrate the company's growth potential and ability to sustain dividends.
Next Steps for Dividend Investors
In conclusion, Skyworks Solutions Inc's consistent dividend payments, solid growth rates, manageable payout ratio, and strong profitability metrics make it an attractive option for value investors focused on dividends. The company's robust financial health and growth prospects suggest that its dividend payments are sustainable and could potentially increase in the future. Value investors seeking to expand their portfolio with high-dividend yield stocks may find Skyworks Solutions Inc a compelling choice, and can use tools like the High Dividend Yield Screener on GuruFocus to discover similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
