In 1992, Linear Technology, a developer and manufacturer of analog semiconductors, initiated dividends. The company increased its dividend of approximately $ 0.01 per share each year thereafter. In fiscal 2002, Linear experienced its first significant drop in sales since the 1986 initial public offering. Sales fell 47% and profits fell by 54%. In the spring of 2003, Chief Financial Officer Paul Coghlan decides whether to recommend a further increase in the dividend payout ratio to raise Line at 33.1%, high by the standards of technology firm. "Hide
by Malcolm P. Baker, Alison Berkley Wagonfeld Source: HBS Premier Case Collection 18 pages. Publication Date: October 28, 2003. Prod. #: 204066-PDF-ENG
Related Case Solutions & Analyses:
Regulatory Uncertainty and Corporate Responses to Environmental Protection in China
SecondMarket – Providing Liquidity for Shareholders of Privately Held iContact
Systems Infrastructure at Google (B)
Bank of America-Merrill Lynch
CityCenter (C): Turmoil and Choices
New Delhi Water and Power
Cocoa Petes Chocolate Adventures (Abridged)
Note on the FDReview Process for Medical Devices
Helen Drinan: Giving Voice to Her Values (A)
Building Career Foundations: Kevin Williams (B), Video
