3 Semiconductor Companies with Juicy Dividends

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Semiconductor companies are all the rage recently due to their resilience in a tepid market. If we add in the decent dividends, it is going to make income growth investors take notice. And here are 3 semiconductor companies with delicious dividend yields you can pay attention to.

#1 Frencken Group Ltd

Frencken Group Limited is a global high-tech capital and consumer equipment service provider. The Group serves customers in Europe, Asia and the USA through a global network of operating subsidiaries. Frencken has two main divisions – Mechatronics Division & Integrated Manufacturing Services (IMS) Division. As of the latest annual report, Frencken’s revenue increased by 5.3% to $659.2 million. Net profit increased subtantially by 41.1% to $ 42.3 million. Free cash flow improved drastically from 2018’s $0.8 million to $79.6 million. As a result, cash balance jumped to $122.4 million. The Group has a dividend payout ratio of 30% which amounted to 3 cents/share. A noteworthy point is that the group’s dividend/share has increased by 300% from 2015. Frencken last closed at $0.86, which values it at a P/E ratio of 9.08 and dividend yield of 3.5%.

#2 Valuetronics Holding Limited

Valuetronics is an integrated electronics manufacturing services (EMS) provider, offering a competitive and broad combination of Design, Engineering, and Manufacturing services. Valuetronics is headquartered in Hong Kong and has manufacturing facitilies situated in China and Vietnam. As of the latest annual report, Valuetronics’s revenue dropped by 16.8% to HKD 2.35 billion. Net profit decreased by 10.3% to HKD 178.9 billion. Free cash flow was at a healthy level of HKD 243.2 million. With the strong cash generation, cash balance increased to $1.05 billion. Total dividend per share announced for 2020 was HKD 0.20. This translates to a dividend payout ratio of 49%. Dividend payout ratio has been stable around 50-65% for the past 5 years. Valuetronics last closed at $0.58, which values it at a P/E ratio of 7.63 and a dividend yield of 6.39%.

#3 Venture Corporation Limited

Venture provides contract manufacturing services, technology services, products and solutions. Its capabilities span across marketing research, design, research and development. It is headquartered in Singapore with operations in Southeast Asia, Northeast Asia, America and Europe. As of the latest quarterly report, Venture’s revenue dropped by 27.5% to $673 million. Net profit dropped by 33.6% to $ 60.3 million. As free cash flow was not made known in the quarterly report, the latest known figure was $194.6 million. Venture continues to generate cash and cash balance was at $853.6 million. It was an increase of 19.5% from December 2019’s $714.5 million. Venture announced a total dividend/share of $0.70 for 2019, which translate to a 55% payout ratio. Dividend has been steadily increasing from $0.50/share in 2015 to $0.70/share in 2019. Venture Corporation last closed at $16.08, which values it at a P/E ratio of 14.1 and dividend yield of 4.35%.
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About the author James Yeo

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