Chipmakers Turn Cash into Dividends

Despite Intel's recent lower forecast, S&P's Tom Smith is positive on semiconductor stocks, citing dividends and overall growth

Analog Devices (ADI) delivered good news for investors on Mar. 14 by boosting its quarterly dividend to 16 cents a share, from 12 cents, and authorizing the repurchase of up to $1 billion worth of stock. "They have a lot of cash on hand and need to do something with it," says Tom Smith, semiconductor analyst for Standard & Poor's Equity Research.

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