Amkor Technology Inc is a OSAT (outsourced semiconductor assembly and test) service provider... Show more
Amkor Technology, Inc. (AMKR), a leading provider of outsourced semiconductor packaging and test services, maintains a modest dividend profile with a trailing annual dividend of $0.33 per share and a yield of 0.46%. The company pays dividends quarterly, with the most recent declaration of $0.08352 per share, ex-dividend on March 12, 2026, and payment on March 31, 2026. This positions AMKR as a modest dividend stock rather than a high-yield or aggressive growth payer. The policy emphasizes steady, incremental raises while prioritizing reinvestment in advanced packaging amid AI and computing demand. Over five years, the average yield has been 0.99%, reflecting periodic special payouts like the 2024 $0.40546 distribution.
Amkor initiated regular quarterly dividends in 2021 at $0.04 per share, following a special payment in late 2020. The regular payout steadily increased: to $0.05 in mid-2022, $0.075 late that year, $0.07875 in 2023-early 2025, and $0.08269-$0.08352 in 2025-2026. A notable special dividend of $0.40546 was paid in December 2024 alongside the regular quarterly amount. No cuts have occurred, with 20+ consecutive quarterly payments. Annual regular dividends grew from $0.17 in 2021 to $0.33 currently, demonstrating a long-term strategy of modest, consistent growth tied to improving profitability in OSAT services.
The dividend appears highly sustainable, with a payout ratio of 22.11% leaving ample room for growth or reinvestment. Earnings comfortably cover payments, bolstered by 2025 free cash flow of $308 million and operating cash flow of $1.10 billion. Debt levels are well-managed, with operating cash flow covering interest (75.8% debt coverage) and overall financial stability supporting ongoing payouts. Robust cash reserves of $2 billion at year-end 2025 further enhance coverage, positioning the dividend for potential future increases amid strong demand for advanced packaging.
In the semiconductor industry, AMKR's 0.46% yield is below peers like TSM (1.23%), AMAT (0.80% five-year average), and KLAC (0.97%). Many OSAT and equipment firms prioritize growth over high yields, making AMKR's profile typical—modest but reliable, with lower payout ratios signaling caution in a cyclical sector.
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Amkor Technology may appeal to conservative dividend investors seeking modest income with growth potential in the semiconductor supply chain. Its low 0.46% yield suits those prioritizing capital appreciation and dividend safety over high current income, given the 22% payout ratio and strong cash flow coverage. Long-term holders focused on dividend growth could value the consistent quarterly raises since 2021 and special payouts, especially amid AI-driven demand for OSAT services. However, the cyclical nature of semiconductors introduces volatility, making it less ideal for yield-chasing investors compared to higher-payers like TSM. Balanced portfolios blending growth and stability might find AMKR suitable, though sector risks warrant diversification.
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a provider of outsourced semiconductor packaging and test services
Industry ElectronicProductionEquipment