The Supervisory Board of ST Microelectronics has approved the management’s proposal to increase the annual cash dividend on outstanding shares of the Company’s common stock.
The proposal for the distribution of an annual cash dividend of US$0.40 per outstanding share of the Company’s common stock payable in four equal quarterly installments will be submitted for shareholder approval at the forthcoming 2011 Annual General Meeting of Shareholders.
The proposed dividend equals a 3.2% yield on the Company’s share price at closing on Friday, March 11 on the NYSE and compares to the annual dividend of US$0.28 per share declared last year.
The proposal will be submitted for shareholder approval at the Company’s Annual General Meeting, which will be held in Amsterdam on May 3, 2011.
Upon approval, the dividends will be paid in four equal quarterly installments in May, August and December 2011, and February 2012 to shareholders of record in the month of each quarterly payment.
The first payment date will be on May 26 for the European stock exchanges and on May 31 for the NYSE.
Though the semiconductor industry went through a severe downturn and market recovery over the past two years, Carlo Bozotti, President and CEO of STMicroelectronics comments that STMicroelectronics exited the period with a much stronger product and customer portfolio, amid continued R&D effort, and improving the Company’s net financial position by $1.7 billion.
STMicroelectronics is a global leader serving customers across the spectrum of electronics applications with innovative semiconductor solutions.