STMicro's Government Shareholders Said in Favor of Dividend Cut
- Company has paid 40-cent dividend per share annually since '11
- Dividend yield at over 5% is highest among Europe tech stocks
This article is for subscribers only.
STMicroelectronics NV’s largest shareholders, the French and and Italian governments, are pushing for a dividend cut to allow the chipmaker to invest more in research and development, according to people familiar with the matter. The shares extended their declines in Paris and Milan.
The two governments, which together own 27.5 percent of STMicro, are seeking to strengthen the company’s position in the semiconductor market, said the people, asking not to be identified because the matter isn’t public. A dividend cut could help the company preserve cash and jobs, the people said. No decision has been made and STMicro may opt to keep its annual 40-cent per-share payout, which has been in place since 2011.