Microchip dividend
Microchip pays $1.80 per share in dividends, while real free cash flow per share was $1.13. That cash generation did not fully fund distributions without drawing on the balance sheet.
How much does Microchip pay per share over time?
Revenue went through a boom, a 42.3% fiscal 2025 contraction, and only a 7.1% fiscal 2026 recovery; sales remain far below the fiscal 2023 peak. Operating margin recovered to 10.4% in fiscal 2026 after falling to 6.7% in fiscal 2025. Real free cash flow per share was $1.13 against $1.80 of dividends paid per share.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 1.13 | 1.10 | 4.43 | 5.32 | 4.00 |
| − Dividends paid, per share | 1.80 | 1.82 | 1.66 | 1.25 | 0.89 |
| = FCF not paid out, per share | 1.30 | 2.68 | 2.73 |
What this means. In 2026, the company paid 21 cents more per share in dividends than the cash it generated, so it had to use cash from elsewhere.
Does Microchip cover its dividend with cash?
Common dividends exceeded conventional free cash flow. Positive cash generation therefore did not fully fund distributions without drawing on the balance sheet.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 871.0 | 772.1 | 2,607.6 | 3,134.8 | 2,472.6 |
| − Dividends paid | 984.0 | 975.7 | 911.5 | 695.3 | 503.8 |
| − Share buybacks | 0.0 | 96.5 | 982.1 | 945.8 | 425.6 |
| = Free cash flow not paid out | 714.0 | 1,493.7 | 1,543.2 | ||
| = Paid out more than the free cash flow | 113.0 | 300.1 |
What this means. The company's own net debt is slightly higher because it counts the original amount borrowed, while our figure uses the debt's reported value after accounting adjustments.
What could change Microchip’s dividend?
The recent pattern is less comfortable. Dividends exceeded free cash flow in fiscal 2025 and fiscal 2026, and Microchip acknowledged using borrowings to help finance quarterly dividends. Borrowing to preserve a dividend keeps today’s payment intact but leaves less flexibility tomorrow and adds interest costs. The table tracks free cash flow, shareholder payments, investments, asset sales, share issuance and debt issued or repaid.
The forecast holds the dividend at $1.82 per share in every case and every year. That matches the rate maintained through fiscal 2025 and fiscal 2026, while common dividends exceeded free cash flow in both years.
What is Microchip’s dividend yield today against its share price?
| Today (Oct 19, 2026) | |
|---|---|
| Share price | 73.85 |
| Free cash flow yield (calculated) | 2.1% |
| Dividend yield (calculated) | 2.5% |
What this means. The company’s price-to-earnings ratio drops from 110.2 to 20.2 because the second number uses analysts’ expected profit for the next year, not profit already earned.