November 17, 2025 a 11:31 am
MPWR: Dividend Analysis - Monolithic Power Systems, Inc.
Monolithic Power Systems, Inc. presents a solid opportunity for dividend investors with its established 13-year dividend history and a current dividend yield of 0.64%. The company's prudent payout ratios suggest sustainable dividend policies, supported by robust financial health.
📊 Overview
Monolithic Power, a player in the technology sector, shows a commendable dividend profile characterized by consistent dividend growth and reliable payouts.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend yield | 0.64% |
| Current dividend per share | 4.95 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
📈 Dividend History
The consistent upward trend in dividends indicates strong management confidence in financial stability and revenue generation, critical for valuing long-term income potential.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 4.68 |
| 2024 | 5.00 |
| 2023 | 4.00 |
| 2022 | 3.00 |
| 2021 | 2.40 |
📈 Dividend Growth
The strong growth over both three and five-year periods underpins the company's commitment to returning capital to shareholders, illustrating sustainable profit expansion.
| Time | Growth |
|---|---|
| 3 years | 27.72% |
| 5 years | 25.59% |
The average dividend growth is 25.59% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
The payout ratio is a critical indicator of dividend sustainability. Monolithic's payout ratio based on EPS is alarmingly lower than the FCF-based one, which provides a generally cautious yet progressive outlook on future dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 12.51% |
| Free cash flow-based | 33.64% |
The EPS payout of 12.51% reflects a conservative approach, adhering to growth and sustainability, while a 33.64% FCF payout indicates buffer capacity for maintaining dividends even in financially challenging times.
⚙️ Cashflow & Capital Efficiency
Strong cash flows underscore Monolithic's capability to fund its dividends effortlessly. This ensures the company's resilience and potential for capital reinvestment.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.23% | 1.93% | 1.13% |
| Earnings Yield | 6.21% | 1.42% | 2.64% |
| CAPEX to Operating Cash Flow | 18.53% | 9.02% | 23.85% |
| Stock-based Compensation to Revenue | 9.31% | 8.22% | 8.97% |
| Free Cash Flow / Operating Cash Flow Ratio | 81.47% | 90.98% | 76.14% |
The data reflect a stable and efficient use of capital resources, indicating well-managed operations aligned with long-term financial strategies.
🔍 Balance Sheet & Leverage Analysis
The low debt levels relative to capital and assets indicate sound financial health, reducing risk exposure and providing robust liquidity positions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.50% | 0.27% | 0.10% |
| Debt-to-Assets | 0.44% | 0.23% | 0.08% |
| Debt-to-Capital | 0.50% | 0.27% | 0.10% |
| Net Debt to EBITDA | -1.17% | -1.00% | -0.51% |
| Current Ratio | 5.31 | 7.74 | 5.36 |
| Quick Ratio | 3.89 | 6.11 | 3.66 |
| Financial Leverage | 1.15 | 1.19 | 1.23 |
With nearly non-existent debt levels, the company is well-positioned to weather financial storms without compromising operational efficiency or asset liquidity.
📈 Fundamental Strength & Profitability
High margins indicate a strong competitive position and an efficient cost structure, which augur well for sustaining profitability and enabling dividend growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 56.80% | 20.85% | 26.23% |
| Return on Assets | 49.40% | 17.56% | 21.26% |
| Margins: Net | 80.95% | 23.47% | 24.39% |
| Margins: EBIT | 24.44% | 26.45% | 29.36% |
| Margins: EBITDA | 26.09% | 28.66% | 31.43% |
| Gross Margins | 55.32% | 56.07% | 58.44% |
| R&D to Revenue | 14.71% | 14.48% | 13.39% |
The company's high return on equity and robust margin profiles are indicative of its capability to generate value and sustain profit growth, supporting long-term dividend payouts.
📈 Price Development
✅ Dividend Scoring System
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34 out of 40
🗣️ Rating
In conclusion, Monolithic Power Systems, Inc. exhibits a robust dividend-paying capability underpinned by its financial performance and strategic growth initiatives. With high scores in dividend stability and balance sheet quality, it is a commendable choice for risk-averse investors seeking reliable income streams and capital appreciation potential.