Skyworks Solutions Inc's Dividend Analysis
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.
Forecasting Growth: Skyworks Solutions Inc's Prospects
To ensure the sustainability of dividends, a company must have robust growth metrics. Skyworks Solutions Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Skyworks Solutions Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Skyworks Solutions Inc's revenue has increased by approximately 14.70% per year on average, outperforming approximately 57.11% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Skyworks Solutions Inc's earnings increased by approximately 20.50% per year on average, outperforming approximately 42.51% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 14.40%, outperforms approximately 44.23% of global competitors.
Concluding Insights on Skyworks Solutions Inc's Dividend Profile
In light of Skyworks Solutions Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and positive growth metrics, the company presents an appealing profile for value investors focused on dividend income. While past performance is indicative, it is crucial to consider the broader market and technological trends that could impact Skyworks Solutions Inc's future. Investors are encouraged to conduct thorough due diligence and consider whether Skyworks Solutions Inc aligns with their investment strategy and income objectives. For those seeking to diversify their portfolio with high-dividend yield stocks, GuruFocus Premium offers a valuable resource with the High Dividend Yield Screener.
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.
This article first appeared on GuruFocus.
