June 10, 2026 a 03:31 pm
SWKS: Dividend Analysis - Skyworks Solutions, Inc.
Skyworks Solutions, Inc. is a prominent player in the semiconductor industry, renowned for its innovation and strategic market positioning. With a robust market capitalization, the company showcases both stability and growth prospects. Though its current dividend yield offers moderate income potential, the company's financial metrics suggest a balanced approach between shareholder returns and reinvestment.
📊 Overview
Examining Skyworks Solutions' dividend metrics reveals valuable insights into its financial health and investor appeal. The sector classification establishes its competitive landscape, while the dividend yield and the number of years of consecutive dividend payments highlight its commitment to shareholder returns.
| Metric | Details |
|---|---|
| Sector | Semiconductors |
| Dividend yield | 3.40 % |
| Current dividend per share | 2.80 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
🗣️ Dividend History
The analysis of Skyworks Solutions' dividend history underscores its reliability in providing consistent income streams to its shareholders. This consistency is crucial in volatile markets as it reassures investors about the stability of returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.42 |
| 2025 | 2.82 |
| 2024 | 2.76 |
| 2023 | 2.60 |
| 2022 | 2.36 |
📈 Dividend Growth
Tracking dividend growth is crucial for assessing future income potential. Skyworks Solutions demonstrates a solid dividend growth trajectory, reflecting its profitability and commitment to increasing shareholder rewards.
| Time | Growth |
|---|---|
| 3 years | 6.12 % |
| 5 years | 8.45 % |
The average dividend growth is 8.45 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Assessing payout ratios gives insight into whether the dividend payments are sustainable and supported by the earnings or cash flows of the company. Understanding if these are maintainable is crucial for assessing the risk of future dividend cuts.
| Key Figure | Ratio |
|---|---|
| EPS-based | 116.59 % |
| Free cash flow-based | 60.47 % |
The EPS-based payout ratio of 116.59 % suggests the dividend exceeds earnings, potentially raising sustainability concerns. Conversely, the 60.47 % payout of free cash flow offers greater sustainability.
⚠️ Cashflow & Capital Efficiency
Cashflow and capital efficiency metrics provide an overview of the company's operational efficiency and its ability to generate cash flows relative to its investment. These metrics are vital for gauging long-term sustainability and growth potential.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 10.31% | 10.54% | 9.29% |
| Earnings Yield | 6.25% | 3.77% | 4.01% |
| CAPEX to Operating Cash Flow | 12.72% | 8.60% | 14.99% |
| Stock-based Compensation to Revenue | 3.88% | 4.32% | 5.69% |
| Free Cash Flow / Operating Cash Flow Ratio | 87.28% | 91.40% | 85.01% |
| Return on Invested Capital | 13.14% | 7.75% | 6.35% |
Skyworks Solutions exhibits strong cash flow generation relative to its capital investments, a favorable sign of financial health and capacity for self-funded growth.
📉 Balance Sheet & Leverage Analysis
Analyzing balance sheet metrics provides insight into the company's leverage and financial stability. These indicators are crucial for assessing financial flexibility and risk management.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 24.81% | 18.94% | 20.90% |
| Debt-to-Assets | 17.91% | 14.49% | 15.20% |
| Debt-to-Capital | 19.88% | 15.93% | 17.29% |
| Net Debt to EBITDA | 0.45x | -0.15x | 0.04x |
| Current Ratio | 3.33 | 5.54 | 2.33 |
| Quick Ratio | 2.16 | 4.24 | 1.76 |
| Financial Leverage | 1.38 | 1.31 | 1.38 |
The moderate debt levels and substantial liquidity position indicate strong financial stability and low financial risk, supporting the company’s ability to sustain operations and dividends.
🔍 Fundamental Strength & Profitability
Profitability metrics provide insights into how efficiently a company can convert revenues into profits, reflect operational efficiency and growth potential. These metrics are critical for understanding the financial viability of the business.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 16.16% | 9.41% | 8.29% |
| Return on Assets | 11.66% | 7.20% | 6.03% |
| Net Profit Margin | 20.59% | 14.27% | 11.67% |
| EBIT Margin | 23.95% | 15.97% | 13.55% |
| EBITDA Margin | 36.81% | 26.77% | 24.88% |
| Gross Margin | 44.16% | 41.19% | 41.16% |
| Research & Development to Revenue | 12.71% | 15.12% | 19.22% |
Skyworks Solutions demonstrates solid profitability, with noteworthy return metrics indicating effective resource utilization and a strong competitive position.
🚀 Price Development
📊 Dividend Scoring System
| Criteria | Score | Representation |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 33 out of 40
🗣️ Rating
Skyworks Solutions holds a strong dividend profile with consistent payouts and moderate growth. While the high EPS-based payout ratio raises some sustainability concerns, the solid financial foundation and impressive cash flow metrics support continued dividend stability. Investors seeking steady income streams along with growth potential may find SWKS to be a promising addition to their portfolios.
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