Analog Devices Raises Quarterly Dividend by 8% and Increases Share Repurchase Authorization by $10 Billion

Rhea-AI Summary

Analog Devices (ADI) has announced two significant shareholder-focused initiatives: an 8% increase in its quarterly dividend to $0.99 per share and a $10 billion expansion of its share repurchase authorization, bringing the total buyback capacity to $11.5 billion.

This marks ADI's twenty-first consecutive year of dividend increases, with historical dividend payments exceeding $13 billion and share repurchases totaling approximately $16 billion over this period. The company maintains its commitment to returning 100% of free cash flow to shareholders while continuing investments in product development, manufacturing, and customer service.

The increased dividend will be payable on March 17, 2025, to shareholders of record as of March 4, 2025.

Positive

• 8% increase in quarterly dividend to $0.99 per share
• New $10 billion share repurchase authorization, total authorization now $11.5 billion
• 21 consecutive years of dividend increases
• 100% of free cash flow returned to shareholders
• Strong track record with $13 billion in dividends and $16 billion in buybacks historically

Negative

• None.

Insights

Financial Analyst

The 8% dividend increase and substantial $10 billion share repurchase authorization represent a significant commitment to shareholder returns, particularly noteworthy in the cyclical semiconductor industry. The new quarterly dividend of $0.99 per share marks the company's 21st consecutive year of increases, demonstrating exceptional financial stability and predictable cash flow generation.

The expanded buyback program, bringing the total authorization to $11.5 billion, represents approximately 11% of ADI's market capitalization. This substantial authorization provides management with extended flexibility to opportunistically repurchase shares, potentially supporting earnings per share growth through share count reduction.

ADI's commitment to returning 100% of free cash flow to shareholders while maintaining investments in R&D and manufacturing capabilities is particularly impressive. This balanced approach has resulted in cumulative returns of $29 billion to shareholders through dividends and buybacks over their capital return program's history, while preserving the company's competitive position through strategic investments.

The timing of this announcement amid semiconductor industry cyclicality demonstrates management's confidence in ADI's business model resilience and future cash generation capabilities. The company's hybrid manufacturing strategy and diverse end-market exposure provide stability that supports this aggressive capital return policy, distinguishing ADI from peers who typically maintain more conservative shareholder return programs during industry cycles.

WILMINGTON, Mass., Feb. 18, 2025 /PRNewswire/ -- Analog Devices, Inc. (NASDAQ: ADI), a global semiconductor leader, today announced that its Board of Directors voted to increase its quarterly dividend by 8% to $0.99 per outstanding share of common stock, marking twenty-one consecutive years of higher dividends. Additionally, the Board of Directors authorized the company to repurchase an additional $10.0 billion of its common stock, bringing the total remaining share repurchase authorization to approximately $11.5 billion. Under the share repurchase program, the company may repurchase outstanding shares of its common stock from time to time on the open market or through privately negotiated transactions. ADI management will determine the timing and number of shares to be repurchased.

"ADI's resilient business model and track record of delivering profitable growth enables our return of 100% of free cash flow to shareholders over the long term," said Vincent Roche, CEO and Chair. "Over the 21 years of our capital return program, we have paid dividends amounting to more than $13 billion and repurchased approximately $16 billion of our common stock. We have delivered this tremendous shareholder return while continuing to invest vigorously in our cutting-edge product portfolio, agile hybrid manufacturing network, and customer-centric service model, enhancing our ability to deliver even more attractive cash returns to our investors in the future."

The dividend increase is effective with the dividend payable on March 17, 2025, to shareholders of record as of the close of business on March 4, 2025.

About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world. With revenue of more than $9 billion in FY24 and approximately 24,000 people globally, ADI ensures today's innovators stay Ahead of What's Possible. Learn more at www.analog.com and on LinkedIn and Twitter (X). 

Forward Looking Statements 
This press release contains forward-looking statements regarding, among other things, the timing and amount of cash dividends and share repurchases, return of free cash flow, reinvesting in our business, delivering value to shareholders and our financial position in the future. Statements that are not historical facts, including statements about our beliefs, plans and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: economic, political, legal and regulatory uncertainty or conflicts; changes in demand for semiconductor products; manufacturing delays, product and raw materials availability and supply chain disruptions; products that may be diverted from our authorized distribution channels; changes in export classifications, import and export regulations or duties and tariffs; our development of technologies and research and development investments; our future liquidity, capital needs and capital expenditures; our ability to compete successfully in the markets in which we operate; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; security breaches or other cyber incidents; risks related to the use of artificial intelligence in our business operations, products, and services; adverse results in litigation matters; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission ("SEC"), including the risk factors contained in our most recent Annual Report on Form 10-K. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.

Contact
Michael Lucarelli
Vice President, Investor Relations
Analog Devices, Inc.
781-461-3282 
investor.relations@analog.com

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SOURCE Analog Devices, Inc.

FAQ

What is the new quarterly dividend amount for Analog Devices (ADI) stock?

Analog Devices has increased its quarterly dividend by 8% to $0.99 per share, effective March 17, 2025.

How much is ADI's new share repurchase authorization?

ADI's Board authorized an additional $10 billion for share repurchases, bringing the total remaining authorization to approximately $11.5 billion.

When will ADI's increased dividend be payable?

The increased dividend will be payable on March 17, 2025, to shareholders of record as of March 4, 2025.

How long has ADI been increasing its dividends consecutively?

ADI has increased its dividends for 21 consecutive years.

How much has ADI returned to shareholders through dividends and buybacks historically?

Over 21 years, ADI has paid more than $13 billion in dividends and repurchased approximately $16 billion of common stock.

What percentage of free cash flow does ADI return to shareholders?

ADI returns 100% of its free cash flow to shareholders over the long term.