Skyworks Solutions, Inc. (NASDAQ:SWKS) Increases Dividend to $0.71 Per Share

Key Points

• Skyworks Solutions, Inc. announced a quarterly dividend increase to $0.71 per share, marking a 1.4% rise from the previous dividend of $0.70.
• The company has a payout ratio of 66.0%, indicating that the dividend is well-covered by earnings, with expectations for a future payout ratio of 97.2% based on projected earnings of $2.88 per share.
• Skyworks reported earnings per share of $1.33 for the last quarter, surpassing estimates, with revenue increasing by 6.6% year-over-year to $965 million.

Skyworks Solutions, Inc. (NASDAQ:SWKS - Get Free Report) announced a quarterly dividend on Tuesday, August 5th, Wall Street Journal reports. Investors of record on Tuesday, August 26th will be paid a dividend of 0.71 per share by the semiconductor manufacturer on Tuesday, September 16th. This represents a c) annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend is Tuesday, August 26th. This is a 1.4% increase from Skyworks Solutions's previous quarterly dividend of $0.70.

Skyworks Solutions has a payout ratio of 66.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Skyworks Solutions to earn $2.88 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 97.2%.

Skyworks Solutions Stock Up 3.7%

Shares of NASDAQ:SWKS traded up $2.53 during midday trading on Friday, hitting $71.08. 2,595,941 shares of the stock were exchanged, compared to its average volume of 2,594,671. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.80 and a current ratio of 2.39. Skyworks Solutions has a 52-week low of $47.93 and a 52-week high of $110.76. The business's fifty day simple moving average is $72.71 and its two-hundred day simple moving average is $69.32. The company has a market capitalization of $10.55 billion, a PE ratio of 28.43, a P/E/G ratio of 1.79 and a beta of 1.13.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.09. The company had revenue of $965.00 million for the quarter, compared to the consensus estimate of $940.00 million. Skyworks Solutions had a return on equity of 11.77% and a net margin of 9.88%. The firm's revenue was up 6.6% compared to the same quarter last year. During the same period last year, the business posted $1.21 earnings per share. As a group, research analysts predict that Skyworks Solutions will post 3.7 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have commented on SWKS shares. Barclays raised their price target on shares of Skyworks Solutions from $45.00 to $52.00 and gave the stock an "underweight" rating in a research note on Thursday, May 8th. Citigroup raised their price target on shares of Skyworks Solutions from $63.00 to $66.00 and gave the stock a "sell" rating in a research note on Wednesday. Mizuho raised their price target on shares of Skyworks Solutions from $72.00 to $75.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 1st. Susquehanna raised their price target on shares of Skyworks Solutions from $60.00 to $75.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. Finally, Wall Street Zen upgraded shares of Skyworks Solutions from a "hold" rating to a "buy" rating in a research note on Saturday. Four investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $72.87.

Skyworks Solutions Company Profile

Skyworks Solutions, Inc, together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators.