Is Analog Devices, Inc. (ADI) a Hidden Gem for Dividend Investors?

Analog Devices, Inc. (NASDAQ:ADI) is one of the 10 Technology Dividend Aristocrats to Buy in 2025.

Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that develops and markets integrated circuits, software, and subsystems for a range of industries, including automotive, healthcare, and consumer electronics.

A technician working on power management in a semiconductor factory.

Analog Devices, Inc. (NASDAQ:ADI) has earned a reputation as a reliable dividend payer in the tech industry, largely due to its strong cash position, which has supported consistent dividend growth. Over the past five years, the company has increased its dividend at an average annual rate of nearly 11%, which is an impressive pace, particularly in a sector where dividend growth isn’t typically a priority. ADI has now raised its dividend for 21 consecutive years.

Analog Devices, Inc. (NASDAQ:ADI)’s ability to maintain and grow its dividend is underpinned by solid cash generation. Over the trailing twelve months, ADI reported $4 billion in operating cash flow and $3.3 billion in free cash flow, accounting for 39% and 34% of its revenue, respectively. In the second quarter of 2025 alone, the company returned $700 million to shareholders through a combination of dividends and share buybacks. The stock supports a dividend yield of 1.73%, as of June 22.

The company’s strong and consistent business model has supported its ability to return 100% of free cash flow to shareholders over the long term. Over the past 21 years, Analog Devices, Inc. (NASDAQ:ADI) has distributed more than $13 billion in dividends and repurchased around $16 billion worth of its common stock. At the same time, the company has continued to invest heavily in its advanced product lineup, flexible hybrid manufacturing capabilities, and customer-focused service approach. The efforts are expected to further strengthen its capacity to generate attractive cash returns going forward.

While we acknowledge the potential of ADI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure. None.