KLA, TSM and Power Integrations: chip stocks raise dividends News ad

In an industry that is primarily categorized by growth rather than revenue, finding companies that offer a combination of both can be valuable. Below are three semiconductor stocks that hope to provide dividend income to investors and have recently seen noticeable increases in the amounts they pay out. I will review each firm’s dividend information and provide information about their business.

KLA: Hardware giant gears up for 15th consecutive annual dividend increase

UAC NASDAQ: CLACKWhile it doesn’t manufacture or design chips, it sells the equipment needed to make them. Like ASML NASDAQ: ASMLKLA specializes in the production of semiconductor manufacturing equipment. ASML sells lithography equipment, while KLA specializes in process diagnostic control (PDC) and metrology. These are not individual steps in the semiconductor manufacturing process, such as lithography, but rather processes that occur at each step.

PDC essentially detects problems in a process and works to correct them. One of the main goals of this project is to increase the number of usable chips that manufacturers produce on a single silicon wafer. Metrology is the scientific study of measurement. For semiconductors, KLA’s metrology equipment measures both the physical and electrical properties of wafers and other components during production. This is important throughout the process to ensure that the semiconductors exactly meet their design specifications. Electron microscopes are an example of a tool used in semiconductor metrology.

KLA announced a significant increase in its quarterly dividend on November 7th. That figure now stands at $1.70 per share, representing an increase of more than 17% from the previous quarter. Assuming the company pays this amount over four quarters, the stock’s dividend yield would be 1.1%. This will be the 15th consecutive year that KLA has increased its annual dividend.

TSM: Industry Company Increases Dividends by Almost Double-Digit Percentage

Taiwan semiconductor manufacturing New York Stock Exchange: TSM is a company that buys UAC equipment. This is supported by the fact that publicly traded companies must explicitly disclose every customer that generates more than 10% of their total revenue on Form 10-K. UAC includes both TSM and Samsung Electronics. OTsMKTS: SSNLFin the “Clients” section on Form 10-K. TSM is considered by many to be the second most famous semiconductor company in the world after NVIDIA. NASDAQ: NVDA.

TSM is exactly what its name suggests: a semiconductor manufacturer. This sets it apart from semiconductor developer NVIDIA. NVIDIA designs its own chips but outsources production to companies like TSM. TSM is recognized for its near-monopoly ability to produce the world’s most advanced semiconductors. These are the types of chips needed for data centers and artificial intelligence, which will allow TSM to benefit greatly from the boom in these areas. TSM stock provided a total return of 82% in 2024.

It also just decided to reward investors with a significant dividend increase. The company announced it would raise its quarterly dividend from 63 cents per share to 69 cents per share, an increase of 9%. If paid out over a full year, this would give the company a dividend yield of almost 1.5% at the current share price.

Integration of the electric power industry: shares of companies producing chips for consumer electronics increase dividends

Energy integration NASDAQ: POWI much smaller than the other two giants on this list, with a market cap of just $3.5 billion. The company produces chips used for high-voltage energy conversion. The most commonly understood form of this process is the conversion of high voltage electricity from a wall outlet into the low voltage form used to power most household appliances.

In 2023, chips for these types of devices accounted for 68% of the company’s total revenue. However, the company also generated 32% of its revenue from industrial use. This includes powering applications such as industrial control systems, renewable energy systems and electric vehicles.

The company announced it would increase its quarterly dividend by 1 cent to 20 cents per share. This represents a modest 5% increase. If paid out for a full year, the stock’s dividend yield would be just under 1.4% at its current price. The company has consistently increased its annual dividend payments since 2008. Unfortunately for the company, its lack of interest in data centers and artificial intelligence prevented it from riding the wave that sent some chipmaker stocks soaring in 2024. in the year it provided a total return of -21%.

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