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EINDHOVEN, Netherlands - NXP Semiconductors N.V. (NASDAQ:NXPI), currently offering a 1.87% dividend yield and maintaining a GOOD financial health score according to InvestingPro, announced Thursday that its board of directors has approved an interim dividend of $1.014 per ordinary share for the second quarter of 2025.
The dividend will be paid in cash on July 9, 2025, to shareholders of record as of June 25, 2025, according to a company press release.
NXP cited the "continued and significant strength" of its capital structure and confidence in its ability to drive long-term growth and strong cash flow as reasons for the dividend approval.
The interim dividend will be subject to Dutch dividend withholding tax at a rate of 15 percent, which may be reduced in certain circumstances. Non-Dutch resident shareholders may be entitled to full or partial refunds depending on their circumstances.
NXP Semiconductors, which posted revenue of $12.61 billion in 2024, operates in more than 30 countries and provides solutions in automotive, industrial and IoT, mobile, and communications infrastructure markets.
The dividend announcement comes as part of the company’s ongoing capital return program. Shareholders uncertain about tax treatment of dividends are advised to consult their tax advisors.
In other recent news, NXP Semiconductors reported first-quarter revenues of $2.835 billion, marking a 9% decrease year-over-year and quarter-over-quarter. Despite this decline, the company slightly outperformed market expectations with its Non-GAAP earnings per share (EPS) of $2.66, which was higher than both Stifel’s and the Street’s estimates. UBS maintained a Buy rating with a price target of $265, highlighting that NXP’s non-GAAP EBIT was slightly above expectations. Meanwhile, Stifel kept a Hold rating with a $170 target, noting the company’s free cash flows and leverage metrics.
Analyst firms have adjusted their price targets in response to these developments. Bernstein lowered its target to $200, maintaining a Market Perform rating, citing concerns about tariffs and NXP’s exposure to the automotive sector. Truist Securities reduced its target to $230 but retained a Buy rating, acknowledging the challenges posed by CEO Kurt Sievers’ planned retirement and the complex market environment. Additionally, Truist reiterated a Buy rating with a $258 target, emphasizing the orderly succession plan with Rafael Sotomayor set to take over as CEO.
NXP Semiconductors provided guidance for the second quarter with a revenue midpoint forecast of $2.90 billion, indicating a 2% sequential increase. This outlook is slightly above both Stifel’s and the Street’s expectations. As the company navigates these challenges, investors are closely watching the leadership transition and market dynamics impacting the semiconductor industry.
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