In 1992 initiated Linear Technology, a developer and manufacturer of analog semiconductors, a dividend. The company increased its dividend by approximately $ 0.01 per share each year thereafter. In fiscal 2002, Linear recorded his first significant drop in sales since its 1986 IPO. Sales fell by 47% and net profit fell by 54%. In spring 2003, CFO Paul Coghlan will decide whether further increase in the dividend payout ratio linear recommend raising to 33.1% … Read more »

In 1992 initiated Linear Technology, a developer and manufacturer of analog semiconductors, a dividend. The company increased its dividend by approximately $ 0.01 per share each year thereafter. In fiscal 2002, Linear recorded his first significant drop in sales since its 1986 IPO. Sales fell by 47% and net profit fell by 54%. In spring 2003, CFO Paul Coghlan will decide whether further increase in the dividend payout ratio linear recommend to 33.1% raise, by the standards of high technology companies.
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from
Malcolm P. Baker,
Alison Berkley Wagon field
Source: HBS Premier Case Collection
18 pages.
Publication Date: Oct 28, 2003. Prod #: 204066-PDF-ENG
Dividend Policy at Linear Technology HBR case solution