Analog Devices (ADI) DIvidends Date & History

Key Takeaways

• Analog Devices (ADI) pays a quarterly dividend of $1.10 per share, or roughly $4.40 per share annually.
• The current dividend yield sits near 1.1%, modest in absolute terms but above the semiconductor industry median.
• The company has raised its dividend for more than two consecutive decades, with a roughly 10% average annual growth rate over the past five years.
• The payout ratio is near 50%, suggesting the dividend is well covered by earnings and free cash flow.
• ADI is best characterized as a dividend growth stock rather than a high-yield income play.

Dividend Overview

ADI, or Analog Devices, Inc., is a leading semiconductor company focused on analog, mixed-signal, and digital signal processing (DSP) chips used across industrial, automotive, communications, and consumer markets. The company maintains a disciplined, shareholder-friendly dividend policy, distributing $1.10 per share each quarter for an annualized payout of about $4.40 per share.

Based on recent share prices, the current dividend yield is approximately 1.1%. Payments are made quarterly, and the most recent ex-dividend date was September 1, 2026, with payment on September 15, 2026. Because ADI consistently grows its payout each year, it is best classified as a dividend growth stock rather than a high-yield stock or an income-centric holding. The modest yield reflects strong share-price appreciation over time rather than a lack of commitment to returning cash to shareholders.

Dividend History and Growth

ADI has a long track record of rewarding shareholders. The company has increased its dividend for more than 20 consecutive years, placing it in the company of reliable dividend growers. Recent increases illustrate this consistency: the quarterly payout rose from $0.92 in 2024 to $0.99 in 2025, and again to $1.10 in 2026, a year-over-year increase of roughly 10%.

Over the past five years, the dividend has grown at a compound annual rate near 9–10%. This steady, predictable cadence of increases reflects management's confidence in the durability of ADI's cash generation. Rather than pursuing large, volatile payouts, the company favors moderate but dependable annual raises, a strategy well suited to long-term dividend investors who prioritize compounding growth over immediate yield.

Dividend Sustainability and Payout Ratio

The dividend appears well supported. ADI's payout ratio is roughly 50% of earnings, leaving ample room to fund research and development, capital expenditures, and acquisitions while still rewarding shareholders. On a cash-flow basis, the picture is even stronger, with the dividend consuming only about 40% of free cash flow (the cash a company generates after operating and capital expenses).

This conservative coverage provides a meaningful cushion against cyclical downturns in the semiconductor industry. Analog Devices also maintains a solid balance sheet with manageable debt levels relative to its cash flow, further supporting the safety of the payout. While the semiconductor business is inherently cyclical, ADI's diversified customer base and disciplined payout ratio make the dividend resilient through different stages of the cycle.

Dividend Compared to Industry Peers

Within the analog and broader semiconductor sector, ADI's yield of roughly 1.1% is moderate. TXN (Texas Instruments) offers a notably higher yield near 2.5%, while NXPI (NXP Semiconductors) and MCHP (Microchip Technology) also tend to carry somewhat higher yields. By contrast, AVGO (Broadcom) and ON (ON Semiconductor) offer yields more comparable to ADI's.

What ADI may lack in raw yield, it makes up for in consistency. Its multi-decade growth streak and balanced payout ratio rank it among the more dependable dividend payers in the semiconductor space, even if income-focused investors can find higher current yields elsewhere in the sector.

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Is This Stock Attractive for Dividend Investors?

ADI is likely most appealing to dividend growth investors and long-term investors who prioritize dependable, compounding payout increases over immediate income. Its roughly 10% annual dividend growth has historically outpaced inflation, making it a reasonable candidate for investors building long-term income streams. The conservative payout ratio and strong free cash flow coverage also appeal to conservative investors seeking stability.

However, pure income investors requiring high current yield may find the roughly 1.1% yield underwhelming compared with higher-yielding semiconductor peers or traditional dividend sectors. ADI's value proposition centers on total return and dividend growth rather than yield alone. As with any cyclical technology company, earnings can fluctuate with industry conditions, though the diversified end markets and disciplined payout policy help mitigate risk. Investors should evaluate ADI's growth profile alongside their own income needs and time horizon.

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