Marvell (NASDAQ: MRVL) has announced a dividend of $0.06 per share. The payment is scheduled for Thursday, October 29, and will be the last this year. Investors who owned shares as of October 10 retain the right to it.
With 100 MRVL shares, investors will receive $6 in quarterly dividends. At the current price of $237.09, such a package is worth $23,709; at the ex-dividend date, at a price of $275.28, it was worth $27,528. Fifty shares will bring in $3, two hundred will bring in $12, and for $100 quarterly dividends you need to hold 1,667 shares – a position worth $395,151 at the current exchange rate. In other words, the dividend yield on the invested funds remains small.: in order to receive any significant amount on hand, an investor needs a large package.
The dividend has not changed since the start of payments in 2012. The only exception is 2017, when one quarter passed without a payout, which caused the total annual amount to be slightly lower. Marvell's profitability is 0.1%, which is significantly lower than the average for the technology sector of 1.37%. Dividends are paid quarterly, meaning shareholders receive passive income four times a year, but current returns show that dividend income remains a relatively small part of the overall investment case. The forward payout ratio is only 3.30%: the company allocates only a small fraction of the projected profit to dividends.
Another important indicator for dividend capture strategies is the average price recovery after the ex-dividend date. For Marvell, it is 6.7 days, which is how long it takes paper on average to return to the price before the cutoff. The actual dates may vary depending on general market conditions, so you should not focus solely on this indicator.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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