Xilinx Inc. (XLNX) lifts dividend by 6%

Xilinx’s (NYSE:XLNX) dividend was increased by 6%.  Its overall yield is 2.07%. The firm started paying a dividend in 2004.

Xilinx is a large semiconductor company based in California. The firm is a leading designer of programmable logic device. The products it produces are utilized in communication devices and industrial/automobile markets. The semiconductor firm also provides customers with development boards and kits as well as design services. The firm sells its products through a network of distributors as well as direct sales. The company was founded in 1984 and is headquartered in San Jose, California.

Xilinx has maintained a three-year growth rate of dividends of 6.5 percent. Xilinx currently ranks 1st in dividend yield within the large cap technology, specialized semiconductor category. The quarterly dividend for the June payment will be $0.35 versus the prior year rate of $0.33 per share. Xilinx is not a member of our Top 100 Dividend Stocks.  (see below).

The dividend will be paid at the new higher rate on June 1, 2017, to shareholders of record at close of business on May 16, 2017. Xilinx Inc. is currently priced at $64.57. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
5/16/2017 0.35
2/6/2017 0.33
11/4/2016 0.33
8/9/2016 0.33
5/16/2016 0.33
2/29/2016 0.31
11/3/2015 0.31
8/4/2015 0.31
5/11/2015 0.31
2/2/2015 0.29
11/3/2014 0.29
8/4/2014 0.29
2/4/2014 0.25
11/4/2013 0.25
8/5/2013 0.25
5/13/2013 0.25
2/4/2013 0.22
11/5/2012 0.22
8/6/2012 0.22
5/14/2012 0.22
2/6/2012 0.19
11/7/2011 0.19
8/8/2011 0.19
5/16/2011 0.19
2/7/2011 0.16
11/8/2010 0.16
8/9/2010 0.16
5/17/2010 0.16
2/8/2010 0.16

Analysis of Xilinx is based upon our five key criteria for the Top 100 list, which include;

Category Value Score
Dividend Yield 2.07% 318
Dividend Growth (3-7 year avg) 9.2 324
Forward P/E 23.52 442
S&P Financial Rating A- 108
Beta 1.05 353
Total Score 1,545
% Yield 3 Year Div. Growth Rate 7 Year Div. Growth Rate SPS 2017 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr low Yield % 5 yr max Yield %
2.07% 6.5 11.9 10.15 6.18 2.60 7.40 1.87% 2.79%

Positives;

  • Xilinx maintains an investment grade rating of A-.
  • Xilinx has paid out a dividend consecutively for the past 13 years.
  • Xilinx’s dividend yield is above that of the S&P 500 Index.

Negatives;

  • Xilinx maintains a beta of 1.05, higher than the average company.
  • Xilinx’s current dividend yield (2.07%) is below its five-year average historical dividend yield.
  • Xilinx is trading above its ten-year average price/sales (P/S) ratio.
  • Xilinx trades at over 23 times expected 2017 earnings per share.

Earnings & Payout Data; 

2016 2015 2014 2013 2012
Earnings per Share 2.3 2.05 2.44 2.22 1.79
Annual Dividend 1.32 1.24 1.16 1 0.88
Payout Ratio 57.39% 60.49% 47.54% 45.05% 49.16%
Earnings per Share 2017 (projected) 2.4
Dividend 1.38
Payout Ratio 57.50%

Based on the firm’s elevated price/sales ratio, high price/earnings ratio, and high beta, Xilinx Inc. does not qualify as one of our Top 100 Dividend Stocks

Xilinx Inc. Dividend Yield Chart (Click to enlarge)
Snap5

Chart Explanation:  Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years.

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