Silicon Motion Technology Corporation (NASDAQ:SIMO) Announces Dividend Increase - $0.57 Per Share

Key Points

• Silicon Motion Technology increased its quarterly dividend 15% to $0.575 per share, payable November 19 to shareholders of record on November 5. The new annualized dividend is $2.30, yielding approximately 1.2%.
• The dividend appears well covered, with a current payout ratio of 52.5%; analysts expect next year’s earnings to support an estimated payout ratio of 14.7%.
• Despite strong quarterly results—EPS of $4.35 versus $3.30 expected and 131.5% year-over-year revenue growth—the stock was reported down 9.9%, opening at $187.90.

Silicon Motion Technology Corporation (NASDAQ:SIMO - Get Free Report) declared a quarterly dividend on Friday, October 16th. Shareholders of record on Thursday, November 5th will be paid a dividend of $0.5750 per share by the semiconductor producer on Thursday, November 19th. This represents a $2.30 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, November 5th. This is a 15.0% increase from Silicon Motion Technology's previous quarterly dividend of $0.50.

Silicon Motion Technology has increased its dividend payment by an average of 0.1% annually over the last three years. Silicon Motion Technology has a payout ratio of 52.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Silicon Motion Technology to earn $15.58 per share next year, which means the company should continue to be able to cover its $2.29 annual dividend with an expected future payout ratio of 14.7%.

Silicon Motion Technology Stock Down 9.9%

SIMO opened at $187.90 on Tuesday. The business has a fifty day moving average of $247.43 and a 200 day moving average of $213.90. The stock has a market cap of $6.37 billion, a P/E ratio of 20.25, a PEG ratio of 0.39 and a beta of 1.69. Silicon Motion Technology has a 52-week low of $79.76 and a 52-week high of $355.00.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The semiconductor producer reported $4.35 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $1.05. The company had revenue of $560.22 million during the quarter, compared to analyst estimates of $529.10 million. Silicon Motion Technology had a net margin of 0.06% and a return on equity of 34.05%. The firm's revenue for the quarter was up 131.5% on a year-over-year basis. During the same quarter last year, the business posted $1.00 EPS. Equities analysts anticipate that Silicon Motion Technology will post 10.60 EPS for the current fiscal year.

About Silicon Motion Technology

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company's product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.

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