Vishay Intertechnology (NYSE:VSH), a global manufacturer and supplier of semiconductors and passive electronic components, announced today it will distribute a dividend of $0.10 per share on December 27th. The company's dividend yield stands at 1.8%, a figure backed by robust earnings and cash flow coverage.
The forthcoming financial forecast for Vishay indicates an expected decline in earnings per share (EPS) by 25.1% next year. However, the anticipated payout ratio of only 23% suggests that the dividend's sustainability isn't threatened by the projected decrease in EPS.
Historically, Vishay has shown a commitment to increasing shareholder value through its dividends. Since 2013, the company has raised its annual dividend from $0.24 to the recent $0.40, marking a compound annual growth rate (CAGR) of approximately 5.2%. This trend reflects the company's stable dividend performance over time.
In terms of growth and prospects, Vishay has demonstrated rapid annual earnings growth at 41%. Coupled with low payout ratios, this robust growth trajectory bodes well for potential future increases in dividends and indicates effective reinvestment back into the business.
InvestingPro Insights
As Vishay Intertechnology (NYSE:VSH) announces its consistent dividend payout, current metrics from InvestingPro underscore the company's financial health and investor appeal. With a market capitalization of $3.08 billion and a price-to-earnings (P/E) ratio of 9.07, the company presents itself as a value opportunity in the semiconductor space. Notably, the adjusted P/E ratio for the last twelve months as of Q3 2023 stands at an even more attractive 8.57.
InvestingPro Tips highlight that Vishay holds more cash than debt on its balance sheet, which is a strong indicator of financial stability and supports the continuation of dividend payments. Furthermore, the company has a track record of raising its dividend for 7 consecutive years, demonstrating a commitment to returning value to shareholders.
The InvestingPro subscription, now available at a special Black Friday sale discount of up to 55%, includes additional tips that further delve into Vishay's financials and future outlook. There are 13 additional InvestingPro Tips available that can provide investors with a comprehensive understanding of the company's potential and risks.
For those considering an investment in Vishay, the company's solid fundamentals and the insights from InvestingPro paint a picture of a resilient business capable of sustaining its dividend payments amidst market fluctuations.
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