Skyworks (NASDAQ: SWKS) makes chips that are critical to the wireless subsystems of mobile devices, and the company has delivered significant value to its shareholders over the past five years. In fiscal 2018, it derived a whopping 47% of its revenue from Apple, which uses Skyworks' chips across its product portfolio.

As I highlighted recently, Skyworks has a number of compelling growth opportunities in front of it as Apple and other major mobile device makers transition to 5G wireless technology and as more devices become capable of wireless connectivity.

In this article, I'll take a look at why Skyworks isn't just an interesting stock for growth-oriented investors, but also has the makings of a solid dividend stock.

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A short track record, but...

Skyworks started paying a dividend on May 22, 2014, and it's boosted the payout at least once per year since then. A good dividend growth track record is important, as it indicates that management is confident in the staying power of its business. Dividend cuts are a bad look for any company.

The company isn't overextending itself, either. It currently pays a quarterly dividend that works out to $1.52 per share per year. That's a dividend yield of 1.89% at the stock's recent closing price, which is not the biggest yield in semiconductors or, more broadly, technology, but is respectable nonetheless. At the same time, Skyworks generated a whopping $5.09 per share in free cash flow over the past 12 months.

That means Skyworks is giving back about 30% of its trailing-12-month free cash flow in the form of a dividend. So even if Skyworks hits a rough patch, it shouldn't have to cut the dividend and could even boost it, simply by increasing the percentage of free cash flow it allocates to paying the dividend.

In short, while Skyworks' stock, like many tech stocks, can be volatile, investors should be able to count on the current dividend, as well as on having it grow in the years ahead. The pace of that growth will, of course, depend on how rapidly the company can grow its free cash flow per share, which is why even income-oriented investors should pay keen attention to a company's business performance.

Investor takeaway

If you're simply looking to chase the biggest dividend yield you can find in the sector, Skyworks isn't the stock for you. However, if you like Skyworks' growth story and think the stock is set to deliver solid appreciation over the long term, then the company's solid and growing dividend should serve to sweeten the deal.