STMicroelectronics (STM) DIvidends Date & History

Key Takeaways

• STMicroelectronics pays a quarterly dividend of $0.09 per share, equating to an annual payout of $0.36 and a trailing yield of approximately 0.7%.
• The company increased its quarterly dividend from $0.06 in early 2024 to the current $0.09, demonstrating commitment to shareholder returns.
• Trailing twelve-month (TTM) payout ratio exceeds 200%, raising questions about short-term sustainability amid softer earnings.
• Levered free cash flow (FCF, cash generated after capital expenditures) is negative TTM at -$167 million, though operating cash flow remains positive at $2.11 billion.
• Dividend yield lags semiconductor peers like TXN (around 3%) but offers stability in a growth-oriented sector.
• Strong balance sheet with $4.57 billion in cash and low debt-to-equity ratio of 14% supports ongoing payments.

Dividend Overview

STMicroelectronics maintains a progressive dividend policy, proposing quarterly cash dividends based on financial results, capital needs, and market conditions. The company currently distributes $0.09 per share quarterly, for an annual total of $0.36, approved by shareholders on May 28, 2025, for payments spanning late 2025 into early 2026. This yields about 0.7% at recent stock prices, positioning STM as a modest dividend payer rather than a high-yield or aggressive growth stock. Payments occur reliably each quarter, with the next ex-dividend date on March 23, 2026, and NYSE payment on March 31, 2026. While not a dividend aristocrat, STMicroelectronics has consistently rewarded investors through cyclical semiconductor markets, balancing reinvestment in innovation with shareholder returns.

Dividend History and Growth

STMicroelectronics has paid quarterly dividends consistently since resuming regular payouts around 2010, with amounts fluctuating modestly in response to business cycles. In 2023 and early 2024, the quarterly dividend held at $0.06 per share (annual $0.24). It rose to $0.09 starting mid-2024, reflecting improved profitability, for an annual $0.36. Prior years saw similar stability: $0.06 quarterly in 2022, with slight dips to $0.042 in parts of 2021 and 2020 amid pandemic pressures. Over five years, dividend growth has averaged around 16% annually per some metrics, though recent 1-year growth is about 4%. No cuts have occurred recently, underscoring a strategy of steady, sustainable increases tied to long-term semiconductor demand.

Dividend Sustainability and Payout Ratio

The TTM payout ratio stands at 225%, indicating dividends exceed recent earnings, which raises caution in the near term. This stems from softer semiconductor demand impacting profitability. However, coverage improves when viewing operating cash flow of $2.11 billion TTM, far exceeding the annual dividend obligation. Levered FCF is negative at -$167 million TTM due to high capital spending on fabs and R&D, common in the industry, but the company holds $4.57 billion in cash with a manageable 14% debt-to-equity ratio and current ratio of 3.31. Historical FCF positivity and low leverage suggest the dividend remains supportable, though investors should monitor earnings recovery.

Dividend Compared to Industry Peers

In the semiconductor sector, STM's 0.7% yield is below average for dividend-paying peers. TXN offers over 3%, QCOM around 2%, and TSM about 1.5%, reflecting more mature cash flows. Growth-focused peers like NVDA pay none, prioritizing reinvestment. STM's profile suits investors valuing modest income alongside capital appreciation potential in autos, industrial, and edge AI chips, rather than pure yield seekers.

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Is This Stock Attractive for Dividend Investors?

STMicroelectronics may appeal to conservative dividend investors seeking stability over high yields in the volatile semiconductor space. Its quarterly payouts provide reliable income, backed by a history of increases and no recent cuts, making it suitable for long-term holders balancing growth and modest returns. Dividend growth enthusiasts could value the recent hike and 16% five-year CAGR potential, though the elevated TTM payout ratio warrants monitoring amid cyclical downturns. Income-focused investors might look elsewhere for higher yields like TXN, but STM suits those prioritizing a strong balance sheet—$4.57 billion cash, low debt—and exposure to secular trends in automotive and industrial semiconductors. Overall, it fits portfolios emphasizing total return rather than pure dividend income, with sustainability hinging on market recovery.

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