Skyworks Solutions Inc (NASDAQ:SWKS) – A Dividend Stock Worth Considering

Skyworks Solutions Inc (NASDAQ:SWKS) was identified by our Best Dividend Stocks screen as a potential candidate for income-focused investors. The company combines a solid dividend profile with decent profitability and financial health, making it an interesting option for those seeking reliable payouts.

Dividend Strength

• Attractive Yield: SWKS offers a dividend yield of 4.03%, well above the industry average of 2.66% and the S&P500's 2.38%.
• Consistent Growth: The company has increased its dividend at an average annual rate of 11.77% over the past five years.
• Track Record: SWKS has paid dividends for at least 10 years without reductions, indicating reliability.

Profitability & Financial Health

• Solid Margins: Despite recent declines, SWKS maintains a 10.43% profit margin, outperforming 66% of its semiconductor peers.
• Strong Solvency: With a low debt-to-equity ratio (0.17) and a high Altman-Z score (5.38), the company’s financial stability is sound.
• Liquidity: A current ratio of 4.95 and quick ratio of 3.84 suggest ample ability to meet short-term obligations.

Valuation & Growth Considerations

• Reasonable Valuation: SWKS trades at a P/E of 12.33, cheaper than 90% of its industry peers.
• Modest Growth Outlook: While past revenue and earnings growth has slowed, analysts expect a slight recovery in EPS (1.58% annual growth).

Our Best Dividend Stocks screener lists more high-quality dividend stocks. For a deeper dive, review the full fundamental report on SWKS.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.