Silicon Motion raises dividend, boosting yield to more than double that of the S&P 500

Shares of Silicon Motion Technology Corp. SIMO, +4.76% shot up 5.2% in midday trading Monday, after the supplier of NAND flash controllers raised its dividend by 43%. The Taiwan-based company said it will pay an annual cash dividend of $2.00 per American depositary shares, up from a previous annual dividend of $1.40 a share. The payout of the dividend will be spread out as quarterly payments, to shareholders of record on Nov. 10, and on Feb. 14, May 12 and Aug. 11 of 2022. Based on current share prices, the new annual dividend rate implies a yield of 2.81%, which compares with the implied yield for the S&P 500 SPX, +0.54% of 1.33%. The stock has rallied 47.7% year to date, while the PHLX Semiconductor Index SOX, +1.10% has advanced 21.7% and the S&P 500 has gained 21.4%.