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Microchip Technology(MCHP - Get Report) is a $6 billion firm whose products are used in everything from remote controls to electric motors -- essentially any product that uses electronics falls within MCHP's target market. As a result, the firm boasts a massive customer Rolodex that includes OEMs that wouldn't fall under the "technology company" umbrella.
More recently, Microchip Technology has been targeting an even lower side of the market, eschewing the more complex side of the business where rivals are clustering and opting to sell massive quantities of microcontrollers that perform mundane tasks. The chips are cheap to make and that drives enviable profit margins for the firm.
One result of that is huge profitability -- MCHP's net margins weigh in around 25%. And because the firm isn't pouring as many resources into developing high-end chips, it's able to hike a higher payout for its shareholders. At 4.54%, MCHP is also one of the highest-yielding stocks in the tech sector. It's also one of the most consistent increasers -- the firm essentially hikes its dividend payout each quarter, and it did throughout the recession too. That makes MCHP one of the less-challenging dividend increaser forecasts I'm making, but no less investment worthy.
Investors looking for a big yield and tech sector exposure could do worse than this stock.
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-- Written by Jonas Elmerraji in Baltimore.