Microchip Technology raised its dividend by 0.1 cents to 45.5 cents per share, but its stock fell after projecting fiscal third-quarter results that missed analyst expectations.
The new payout, equal to $1.82 a year, represents an annual yield of about 2.4% based on Tuesday's closing price of $75.09.
The higher dividend will be paid Dec. 6 to shareholders of record as of Nov. 22, the Chandler, Ariz., semiconductor producer said.
Also on Tuesday, Microchip posted lower sales and profit in its fiscal second quarter, and guided for a weaker-than-expected current quarter.
Shares fell 4.1% to $71.96 in after-hours trading.
The company said net income fell to $78.4 million, or 14 cents a share, from $666.6 million, or $1.21 a share, in the same quarter last year.
Adjusted per-share earnings were 46 cents, ahead of the 43 cents that analysts surveyed by FactSet expected.
Sales fell 48% to $1.16 billion, slightly ahead of the $1.15 billion that analysts forecast, according to FactSet.
For its fiscal third quarter, Microchip said it expects net sales between $1.03 billion and $1.1 billion and adjusted per-share earnings between 25 cents and 35 cents. Analysts surveyed by FactSet are looking for revenue of $1.18 billion and adjusted earnings of 46 cents a share.