Three High-Dividend Semiconductor Stocks: Intersil Corporation (ISIL), Analog Devices, Inc. (ADI) and More

Other options

What we can do is to compare the financials with other high dividend paying companies in the industry such as STMicroelectronics (NYSE:STM) and Analog Devices Inc. (NASDAQ:ADI) .

STMicroelectronics is a global independent semiconductor company engaged in development, design, production, and commercialization of semiconductor products with a focus on microelectronic applications for automotive products, computer peripherals, telecommunications systems, consumer products, and industrial automation and control systems. STMicroelectronics has a long dividend history – it pays an annual dividend of $0.34, and has been increasing its payout since 2003.

Analog Devices, on the other hand, designs, manufactures and markets a range of analog, mixed signal, and digital signal processing integrated circuits. The company’s products are integral to a large range of electronic equipment used in industrial process control systems, instrumentation and measurement systems, wireless infrastructure equipment, and aerospace and defense electronics. Analog pays a quarterly dividend of $0.34 per share.

Analog trades at a P/E ratio of 22.23, but the same ratio for STMicroelectronics is not available. However, its forward (December 2014) P/E of 12.97 is more favorable as compared with both Analog Devices Inc. (NASDAQ:ADI) (17.41) and Intersil (30.52).


Intersil Corporation (NASDAQ:ISIL) has the highest dividend yield among the three companies I have reviewed. However, on the basis of long term annual growth rates and current market price, Analog Devices looks more attractive. Moreover, Analog Devices Inc. (NASDAQ:ADI) has a history of uninterrupted profits in the last three years. Still, I would not ignore the prospects of Intersil, considering the recent change in management and that the launch of ISL6446A Dual PWM/Linear Controller considered to be the industry’s most efficient, flexible single-chip solution.

The semiconductor industry is considered to be primarily a growth sector. All three stocks look attractive on the basis of their growth potential, and the high-dividend yield should be viewed as an added advantage.

The article Three High-Dividend Semiconductor Stocks originally appeared on and is written by Sujata Dutta.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.