Skyworks Solutions Inc's Dividend Analysis
In This Article:
Assessing the Sustainability and Growth of Skyworks Solutions Inc's Dividends
Skyworks Solutions Inc(NASDAQ:SWKS) recently announced a dividend of $0.68 per share, payable on 2023-12-12, with the ex-dividend date set for 2023-11-20. 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.
Understanding Skyworks Solutions Inc's Business
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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.
Tracing Skyworks Solutions Inc's Dividend History
Skyworks Solutions Inc has maintained a consistent dividend payment record since 2014, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Analyzing Skyworks Solutions Inc's Dividend Yield and Growth
As of today, Skyworks Solutions Inc currently has a 12-month trailing dividend yield of 2.70% and a 12-month forward dividend yield of 2.89%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Skyworks Solutions Inc's annual dividend growth rate was 11.80%. Extended to a five-year horizon, this rate increased to 13.60% per year. Based on Skyworks Solutions Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Skyworks Solutions Inc stock as of today is approximately 5.11%.
Evaluating the Sustainability of Skyworks Solutions Inc's Dividends
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Skyworks Solutions Inc's dividend payout ratio is 0.41. Skyworks Solutions Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Skyworks Solutions Inc's profitability 9 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.